"One royalty strike and you're out!": a franchisor's independent right to terminate a franchise agreement for nonpayment of royalties and the remedies available under the Lanham Act

Article Abstract:

Royalties strikes occur when franchisees withhold royalty payments as a way of pressuring franchisors. A franchisor has several remedies including termination of the franchise agreement. Case law indicates a franchisee cannot terminate royalty payments and remain part of the franchise system with the right to use the franchise marks or name. Furthermore, case law provides franchisors with remedies strong enough to prevail even when franchisees have asserted their claims prior to cutting off payments.

Lessors of Nonfinancial Intangible Assets (except Copyrighted Works), Patent owners and lessors, Franchising, Contracts, Royalties, Royalties (Intellectual property)

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Saying no: franchisor exposure for franchisee transfer restrictions

Article Abstract:

Courts have tended to uphold franchise agreement clauses restricting franchise transfer, but legislative action may threaten franchisors rights to control such transfers. Courts have tended to deny assignees standing to sue when transfer has been denied, but courts have also required franchisors to act reasonably in making transfer decisions. Antitrust claims have been made on franchisors' refusals to allow transfers, but courts have respected the business justifications for such decisions.

Other Justice, Public Order, and Safety Activities, Franchise Law, Commercial law, Standing (Law), Exclusive dealing agreements, states

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