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Evidentiary Requirements To Recover Lost Future Royalties
When franchisors enter into long-term franchise agreements, they expect to receive a steady stream of royalties for the duration of the agreement. In some cases, that can mean 20 years of royalty revenue from one franchise location. However, if the relationship sours and the agreement is terminated prior to expiration, the franchisor faces the prospect of losing the anticipated stream of royalties for the remaining term of the agreement. More and more often, franchisors are turning to the courts to attempt to recover those lost future royalties.
Most courts agree that if a franchisee terminates the franchise agreement, a franchisor is permitted to recover lost future royalties. See, Healy v. Carlson Travel Network Assocs., 227 F.Supp.2d 1080, 1094 (D. Minn. 2002); Vino 100, LLC v. Smoke on the Water, LLC, 864 F.Supp.2d 269, 286 (E.D. Pa. 2012). However, if the franchisor terminates the franchise agreement due to misconduct or a breach by the franchisee, the issue remains unsettled. See, Postal Instant Press, Inc. v. Sealy, 43 Cal. App. 4th 1704 (1996) (court, applying a proximate cause analysis, refused to allow franchisor to recover lost future royalties when it terminated the agreement); but see, American Speedy Printing Centers, Inc. v. AM Marketing, Inc., 69 F.Appx. 692 (6th Cir. 2003) (court, following traditional contract principles, allowed franchisor to recover lost future royalties even though it terminated the agreement).
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
Removing Restrictive Covenants In New York
In Rockwell v. Despart, the New York Supreme Court, Third Department, recently revisited a recurring question: When may a landowner seek judicial removal of a covenant restricting use of her land?
Why So Many Great Lawyers Stink at Business Development and What Law Firms Are Doing About It
Why is it that those who are best skilled at advocating for others are ill-equipped at advocating for their own skills and what to do about it?
Blockchain Domains: New Developments for Brand Owners
Blockchain domain names offer decentralized alternatives to traditional DNS-based domain names, promising enhanced security, privacy and censorship resistance. However, these benefits come with significant challenges, particularly for brand owners seeking to protect their trademarks in these new digital spaces.
Coverage Issues Stemming from Dry Cleaner Contamination Suits
In recent years, there has been a growing number of dry cleaners claiming to be "organic," "green," or "eco-friendly." While that may be true with respect to some, many dry cleaners continue to use a cleaning method involving the use of a solvent called perchloroethylene, commonly known as perc. And, there seems to be an increasing number of lawsuits stemming from environmental problems associated with historic dry cleaning operations utilizing this chemical.