If a franchisee violates the agreement, can Angry Chickz seek an injunction?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Restaurants within the Protected Area of the Franchisee or within a 10 mile radius from any then-existing Angry Chickz restaurant.
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- The Franchisor is a third-party beneficiary of this Agreement and may enforce it, solely and/or jointly with the Franchisee. I am aware that my violation of this Agreement will cause the Franchisor and the Franchisee irreparable harm; therefore, I acknowledge and agree that the Franchisor and/or the Franchisee may apply for the issuance of an injunction preventing me from violating this Agreement, and I agree to pay the Franchisor and the Franchisee all the costs it (they) incur(s), including, without limitation, attorneys' fees, if this Agreement is enforced against me. Due to the importance of this Agreement to the Franchisor and the Franchisee, any claim I have against the Franchisor or the Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, this Agreement. If any part of this Agreement is held invalid by a court or agency, the rest of the Agreement is still enforceable and the part held invalid is enforceable to the extent found reasonable by the court or agency.
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- This Agreement shall be construed under the laws of the State in which the Franchisee's restaurant is located. The only way this Agreement can be changed is in a writing signed by both the Franchisee and me.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, both Angry Chickz and the franchisee are entitled to seek an injunction if the agreement is violated. Specifically, the FDD states that a violation of the agreement will cause irreparable harm to both parties. Therefore, either Angry Chickz or the franchisee can apply for an injunction to prevent further violations. The party seeking the injunction is entitled to be paid all costs incurred, including attorney's fees, if the agreement is enforced.
This clause highlights the importance of adhering to the franchise agreement. It also means that franchisees need to be aware that any perceived violation on their part could lead to legal action, including an injunction, and potential financial responsibility for legal costs incurred by Angry Chickz. This is a fairly standard clause in franchise agreements, as franchisors need to protect their brand standards and system.
However, the FDD also includes an addendum specific to Minnesota law, which states that while Angry Chickz may seek injunctive relief, the franchisee cannot consent to Angry Chickz obtaining it. Additionally, a court will determine if a bond is required. This addendum modifies the general statement, adding a layer of protection for franchisees in Minnesota by ensuring judicial oversight regarding injunctive relief and potentially requiring Angry Chickz to post a bond. This demonstrates that franchise agreements can be subject to state-specific regulations that can alter the standard terms.
In summary, while Angry Chickz generally has the right to seek an injunction for violations of the franchise agreement, franchisees should be aware of the specific conditions and limitations that may apply based on their state's laws, such as the stipulations provided for franchisees in Minnesota.