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Bet the System Litigation

October 13, 2010

American Bar Association 33rd Annual Forum on Franchising


I. What is Bet the System Litigation (BTSL)?

Bet the System Litigation. As lawyers, we probably all have an idea of what we think that means. However, if you give any serious consideration to the phrase, you quickly will come to recognize that this could mean radically different things to different people. Do you Bet the System only when there will be a potential monetary award that will destroy the business? Or does Bet the System Litigation mean that your business model would be changed if the court found that a method of operation would need to be altered in order to be legal? Because the phrase could mean different things to different people, the authors find it necessary to begin with what is, perhaps, obvious — a definition of Bet the System Litigation.

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