Under the Afuri Ramen Dumpling agreement, can either party seek injunctive relief for violations?
Afuri_Ramen_Dumpling Franchise · 2024 FDDAnswer from 2024 FDD Document
ill be governed by and construed under, all issues relating to its appropriateness for arbitration or the enforcement of the agreement to arbitrate contained in this Agreement will be governed by the Federal Arbitration Act (9 U.S.C. §_1 et seq.) and the federal common law of arbitration.
- D. The provisions of this Section will not limit our right to seek and obtain any provisional or final remedy, including, but without limitation, injunctive relief, an order for payment of any monies due and owing by you, an order for recovery or delivery up of possession, or for specific performance, or similar relief, from any court of competent jurisdiction, as may be necessary in our sole judgment to protect the Marks and the System and our Confidential Information and property rights, to enforce the restrictive covenants of this Agreement, to enforce our contractual rights, and to protect against actual or threatened conduct that on balance would cause or be likely to cause loss or damage if allowed to continue pending completion of an arbitration proceeding.
- 9.8.3 Injunctive Relief and Specific Performance. Either party may obtain in any court of competent jurisdiction specific performance and injunctive relief to restrain a violation by the other party of any term or covenant of this Agreement. Nothing contained in this Agreement will bar us or you to obtain specific performance of the provisions of this Agreement and injunctive relief against threatened
conduct that will cause you or us loss or damages under customary equity rules, including applicable rules for obtaining restraining orders and preliminary injunctions.
- 9.8.4 Governing Law. This Agreement is accepted by us in the State of Oregon and will be governed by the substantive laws of Oregon without regard to Oregon choice of law provisions. Following are exceptions to this choice of laws provision:
- A. Oregon laws will not prevail to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. Sections 1051, et seq.).
- B.
Source: Item 23 — Receipts (FDD pages 50–189)
What This Means (2024 FDD)
According to Afuri Ramen Dumpling's 2024 Franchise Disclosure Document, both the franchisor and franchisee have the right to seek injunctive relief in the event of a breach of the franchise agreement. Specifically, either party can pursue specific performance and injunctive relief in a court of competent jurisdiction to prevent violations of the agreement's terms. This remedy is available to restrain conduct that could cause loss or damages, and can be obtained under customary equity rules, including those for restraining orders and preliminary injunctions. This ensures that both Afuri Ramen Dumpling and the franchisee can take immediate action to protect their interests if the agreement is violated.
Afuri Ramen Dumpling also retains the right to seek provisional or final remedies, including injunctive relief, to protect its Marks, System, Confidential Information, and property rights. This includes enforcing restrictive covenants and contractual rights, and protecting against conduct that could cause loss or damage pending the completion of an arbitration proceeding. This provision underscores the importance Afuri Ramen Dumpling places on protecting its brand and proprietary information.
Additionally, the franchisee acknowledges that disclosing confidential information would cause irreparable harm to Afuri Ramen Dumpling. The franchisee agrees that monetary damages might not adequately compensate for such a breach. Therefore, Afuri Ramen Dumpling is entitled to a restraining order, temporary and permanent injunctive relief, specific performance, or other equitable relief if the franchisee breaches the agreement or takes steps to do so. This entitlement exists without Afuri Ramen Dumpling needing to prove actual damages, highlighting the emphasis on preventing breaches related to confidential information.