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.
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. 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.
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