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Post-Termination Enforcement of Franchise Agreements
A particularly vexing issue for franchisors is enforcing the post-termination obligations against the former franchisee, and against others acting in concert to usurp the benefits of the franchise relationship after it has expired or terminated. The issue usually arises where a restrictive covenant prohibiting competition exists, and the covenantor attempts to circumvent the restriction by having a trusted party continue in the business. A recent decision in New Jersey federal court provides some insight on how to address these issues.
In Jackson Hewitt v. Barnes Enterprises, 2013 U.S. Dist. LEXIS 111390, D. NJ No. 10-cv-05108 (Aug. 2, 2013), the U.S. District Court for the District of New Jersey again had the opportunity to address post-termination enforcement against signatories to a franchise agreement. In the previous 2011 decision, the franchisor alleged a former franchisee was planning on using his father to operate 15 competing tax-preparation businesses to circumvent a covenant against competition. The court agreed to enforce the covenant against the non-signatory father. The court held that injunctions of this type are generally broad enough to encompass nonparties who have actual knowledge of the prohibited acts and are seeking to nullify the decree by aiding and abetting the prohibited acts. In 2013, the parties filed cross-motions for summary judgment.
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?
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.
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.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.
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.