Can Annex Brands seek an injunction against a franchisee's partners or representatives in the event of a breach of covenant?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
Covenantor recognizes and agrees that the injury ABI and certain of its franchisees will suffer in the event of Covenantor's breach of any covenant contained in this Agreement cannot be compensated by monetary damages alone. Covenantor therefore agrees that in the event of a breach or threatened breach by Covenantor of this Agreement, ABI, in addition to and not in limitation of, any other rights, remedies, or damages available to ABI at law, in equity, under this Agreement or otherwise, will be entitled to seek an injunction from any court of competent jurisdiction in order to prevent or restrain any such breach by Covenantor or by Covenantor's agents, representatives, partners, co-owners, or any and all other persons directly or indirectly acting for or with him, her, or them.
Source: Item 22 — Contracts (FDD pages 109–110)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, Annex Brands can seek an injunction against a franchisee's partners or representatives in the event of a breach of covenant. The document states that the franchisee acknowledges that monetary damages may not be sufficient to compensate Annex Brands for a breach of covenant. Therefore, Annex Brands is entitled to seek an injunction from a court of competent jurisdiction to prevent or restrain any breach by the franchisee or their agents, representatives, partners, co-owners, or any other persons acting directly or indirectly for or with them.
This means that if a franchisee, or someone associated with them, violates a covenant within the franchise agreement, Annex Brands has the right to ask a court to issue an order (injunction) to stop the violating behavior. This is in addition to any other legal remedies Annex Brands might pursue, such as seeking monetary damages.
This clause provides Annex Brands with a strong legal tool to enforce the terms of the franchise agreement and protect its interests. It also serves as a deterrent to franchisees and their associates, discouraging them from violating the agreement's covenants. Prospective franchisees should carefully review all covenants within the franchise agreement to understand their obligations and the potential consequences of a breach.