Editor’s note: The author was a lawyer in the two cases mentioned in this article.
Franchise fees are said to be the lifeblood of the franchise system. If the royalties are not paid, does it constitute a claim for money damages or does it create grounds for injunctive relief? Most courts ultimately find this can result in a claim for injunctive relief because money damages are inadequate. This article examines the reasoning of such courts and other defaults in the franchise relationship that constitute irreparable harm.
