factual

If an Anago franchisee violates the non-compete agreement, what weekly fee is required?

Anago Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPTS]

You agree that the scope, length of the term and geographical restrictions contained in this Section are fair and reasonable and not the result of overreaching, duress or coercion of any kind. You agree that Your full, uninhibited and faithful observance of each of the covenants in this Section will not cause any undue hardship, financial or otherwise, and that enforcement of each of the covenants in this Section will not impair Your ability to obtain employment commensurate with Your abilities and on terms fully acceptable to You or otherwise to obtain income required for the comfortable support of yourself and Your family, and the satisfaction of Your creditors. You agree that Your special knowledge of the business of an Anago Unit Franchise (and anyone acquiring this knowledge through You) would cause Us and Our Unit Franchisees serious injury and loss if You (or anyone acquiring this knowledge through You) were to use this knowledge to the benefit of a competitor or were to compete with Us or any of Our Unit Franchisees.

You agree and acknowledge that the rights covered by this ARTICLE 13 are unique and special in nature and We will not have an adequate remedy at law in the event of Your failure to abide by the terms of this ARTICLE 13. Therefore, You agree that for any violation or anticipated violation of any covenant contained in this ARTICLE 13, We shall be entitled to a temporary restraining order, temporary and/or preliminary injunction, and/or permanent injunction against You for such violation, whether anticipated or real, without requiring that We provide bond or other security, and We shall be entitled to a decree of specific performance enforcing the terms of this ARTICLE 13. Nothing contained in this ARTICLE 13 shall prohibit Us from pursuing any other legal or equitable remedy available to Us by law.

If any court finally holds that the time or territory or any other provision in this Section is an unreasonable restriction upon You, You agree that the provisions of this Agreement are not rendered void, but apply as to the scope, time and territory or to any other extent as the court may judicially determine or indicate is a reasonable restriction under the circumstances involved.

SECTION 13.2 INDEPENDENT COVENANTS.

The parties agree that the covenants in ARTICLE 13 are independent of any other provision of this Agreement. You agree that the existence of any claim You may have against Us or any of Our Affiliates, regardless of whether under this Agreement, is not a defense to Our enforcement of these covenants.


[Item 23: RECEIPTS]

SECTION 18.21 EQUITABLE RELIEF.

You agree that the Anago Unit Franchise is intended to be 1 of a large number of businesses identified by the Proprietary Marks in selling to the public the products and services associated with the Proprietary Marks, and therefore the failure on the part of a single Unit Franchisee to comply with the Terms of his or her Unit Franchise Agreement is likely to cause irreparable damage to Us and damages at law would be an inadequate remedy. You agree that upon Your breach or threatened breach of any of the terms of the Agreement, We are entitled to an injunction restraining the breach and/or to a decree of specific performance, without showing or proving any actual damage, together with recovery of reasonable attorneys' fees and costs incurred in obtaining equitable relief. This equitable remedy is in addition to all rights that We have by virtue of any of Your breaches of this Agreement. We are entitled to seek this relief without the posting of any bond or security and, if a bond is nevertheless required by a court of competent jurisdiction, the parties agree that the sum of $1,000 is a sufficient bond.

Source: Item 23 — RECEIPTS (FDD pages 62–298)

What This Means (2025 FDD)

Based on the 2025 FDD, there is no mention of a specific weekly fee for violating the non-compete agreement with Anago. Instead, the FDD outlines the remedies available to Anago if a franchisee violates the non-compete agreement.

According to the FDD, Anago is entitled to seek equitable relief, such as temporary restraining orders, injunctions, and specific performance, to prevent or stop any violation of the non-compete terms. This means Anago can go to court to immediately halt the franchisee's competitive activities. The FDD also states that Anago does not need to provide a bond or security to obtain these injunctions, though if a bond is required, $1,000 is considered sufficient.

In addition to equitable relief, Anago retains the right to pursue any other legal or equitable remedies available under the law. This could include seeking monetary damages to compensate for losses suffered as a result of the franchisee's breach of the non-compete agreement. The FDD emphasizes that the rights covered by the non-compete agreement are unique and special, and that monetary damages alone may not be an adequate remedy for a violation.

Prospective franchisees should be aware that violating the non-compete agreement can lead to immediate legal action and potential financial liabilities. It is important to carefully review and understand the terms of the non-compete agreement before signing the franchise agreement. Franchisees should consult with an attorney to fully understand their obligations and the potential consequences of violating the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.