Extract to table

3 of each FLA provides that, upon termination for cause by Verimark, the franchisee shall pay, as liquidated damages, an amount equal to three times (3×) the trailing-twelve-month royalties for the terminated property

The royalty is calculated at 5% of Gross Room Revenue ("GRR"), and the provision directs that the calculation shall be based on the greater of the franchisee's reported GRR or GRR as determined by Verimark's audit

Upon termination of this Agreement for cause by Franchisor pursuant to Section 14, Franchisee shall pay to Franchisor, as liquidated damages and not as a penalty, an amount equal to three times (3×) the Royalty Fees payable under Section 4

Upon the occurrence of a material breach by the franchisee, Verimark must provide written notice specifying the nature of the breach

Each FLA is an independent contract, and the reasonableness of the liquidated-damages formula must be evaluated on a per-contract, per-property basis

If the liquidated-damages provision is found to be an unenforceable penalty, the entire provision is void, and the non-breaching party must prove its actual damages