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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).
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
How AI Has Affected PR
When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.