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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.
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.
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.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
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.