Besides other remedies, what right does ATFC have for a violation or threatened violation of the restrictions in the All Team Franchise Agreement?

According to All Team's 2025 Franchise Disclosure Document, in addition to other remedies available at law or equity, All Team Franchise Corporation (ATFC) has the right to injunctive relief for a violation or threatened violation of the restrictions outlined in Section XI of the franchise agreement. This means that All Team can seek a court order to stop a franchisee from violating the terms of the agreement. Injunctive relief is a legal remedy that can prevent a party from continuing a specific action.

This provision is significant for prospective franchisees because it highlights All Team's ability to quickly address and prevent breaches of the franchise agreement. It also acknowledges that the restrictions imposed are reasonable and will not unduly burden the franchisee's ability to earn a livelihood. The terms of the non-compete agreement are assignable by All Team and will benefit All Team, its successors, and assigns. In the event of any assignment, sale, merger, or change in ownership or structure of All Team, the resulting entity will assume the position of All Team without requiring additional consent from or notice to the franchisee, as if the term All Team were defined in the agreement to include such entity.

Furthermore, in the event of any breach or threatened breach of the Agreement by any party, the other party shall immediately be entitled to injunctive relief, in addition to any other remedies available to it, (including a temporary restraining order, preliminary injunction and specific performance) without showing or proving any actual damage sustained and shall not thereby be deemed to have elected its only remedy to the exclusion of others. Also, All Team shall be entitled without bond to entry of injunctive relief and orders of specific performance enforcing the provisions of this Agreement, in the event franchisee actually or anticipatorily breaches this Agreement.

This clause is fairly standard in franchise agreements, as franchisors need a mechanism to protect their brand standards, trade secrets, and customer relationships. Franchisees should carefully review the restrictions in Section XI to understand what activities are prohibited and ensure they are comfortable with these limitations. Understanding these restrictions and the potential consequences of violating them is crucial for a successful and compliant franchise operation.