Extract to table

2(c) — Incurable Breach: "Systematic underreporting of Gross Room Revenue shall constitute a material breach that is incapable of cure

3 — Liquidated Damages upon Termination for Cause: In the event of termination by Verimark for cause, the franchisee shall pay liquidated damages equal to three times (3×) the trailing-twelve-month royalties attributable to the terminated property

The lesson for future franchise-litigation matters is clear: when a franchisee uses affiliated entities to collect or divert revenue, counsel must move early and aggressively to compel production of those entities' records, including through formal motion practice if necessary

The lesson for future matters is that collectibility analysis must be conducted early in the litigation and revisited periodically