Does Anago need to provide a bond or security to obtain injunctive relief against a franchisee violating the non-compete agreement?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
ur 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.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, Anago is entitled to seek injunctive relief against a franchisee for breaches of the franchise agreement, including non-compete violations, without needing to post a bond or security.
Specifically, the FDD states that Anago does not have to provide a bond or other security to obtain a temporary restraining order, temporary and/or preliminary injunction, and/or permanent injunction against a franchisee for violating the non-compete agreement. However, if a court requires a bond, Anago and the franchisee agree that $1,000 is a sufficient bond.
This means that if a franchisee violates the non-compete agreement, Anago can quickly seek a court order to stop the franchisee's actions without having to put up a significant amount of money as a bond. This is a significant advantage for Anago, as it reduces the financial burden and risk associated with enforcing the non-compete agreement. For a prospective franchisee, this highlights the importance of understanding and adhering to the non-compete terms outlined in the franchise agreement, as Anago can act swiftly to enforce these provisions.