Nailing the Blob of Mercury: Goodwill in Franchising

[...]the article will propose a method for ascribing and allocating the value of goodwill between franchisor and franchisee. In trademark cases, most courts will admit evidence of consumer surveys demonstrating actual confusion between the two products in the minds of surveyed consumers.77 In one ca...

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Bibliographic Details
Published inFranchise law journal Vol. 33; no. 2; pp. 149 - 165
Main Authors Garner, W. Michael, Ginsburg, Elliot R.
Format Journal Article
LanguageEnglish
Published Chicago American Bar Association Forum on Franchising 01.10.2013
American Bar Association
Subjects
Business
Celebrities
Commercial law
Customer services
Customers
Franchise agreements
Franchisees
Franchising
Goodwill
Injunctions
Irreparable injury
Patronage
Polls & surveys
Preliminary injunctions
Reputations
Restaurants
Restrictive covenants
Trademarks
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Summary:[...]the article will propose a method for ascribing and allocating the value of goodwill between franchisor and franchisee. In trademark cases, most courts will admit evidence of consumer surveys demonstrating actual confusion between the two products in the minds of surveyed consumers.77 In one case, an opinion survey showing 2 5 percent of the respondents confused the two products was sufficient to support an inference of likelihood of confusion.78 However, a trademark owner who received less than 1 percent of its telephone calls from customers who might have confused it with another company did not have a significant level of actual confusion.79 As noted, the Moseley case turned on a consumer survey showing the franchisor's lack of goodwill, thus demonstrating the power that such proof can have.
ISSN:8756-7962
2163-2154