System Restaurant Closure Clause Samples

System Restaurant Closure. Franchisee may not cease to operate any System Restaurant without BRAII's prior consent, except upon condemnation or expiration of a lease pursuant to its terms at execution. Franchisee acknowledges that the damages to BRAII from unauthorized closure of a System Restaurant are difficult to calculate; therefore, if Franchisee violates this Section 10.8, Franchisee will pay as liquidated damages, and not as a penalty, an amount equal to 24 times the average Royalty Fees paid or due with respect to the closed System Restaurant during the calendar year before the closing. If the System Restaurant was not open for business for a full calendar year, the liquidated damages will be 24 times the highest monthly service fee during the period the System Restaurant was open.