BIRCH, Circuit Judge:
In this case we decide whether a franchisor can be held liable for a single act of trademark infringement allegedly committed by one of its many franchisees. The United States District Court for the Northern District of Georgia directed a verdict against the defendant franchisor because it failed to exercise "reasonable diligence" to prevent its franchisee from violating the trademark laws. We find the district court's "reasonable diligence"...
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