Can claims for injunctive relief be brought by the Company where the Aplus Franchisee is located?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
As any breach by Franchisee of any of the restrictions contained in Sections 6, 7, and 17 would result in irreparable injury to Franchisor, and as the damages arising out of any such breach would be difficult to ascertain, in addition to all other remedies provided by law or in equity, Franchisor shall be entitled to seek injunctive relief (whether a restraining order, a preliminary injunction or a permanent injunction) from any court of competent jurisdiction against any such breach, whether actual or contemplated, without the necessity of posting security or bond and Franchisee shall be responsible for Franchisor's reasonable attorneys' fees incurred in pursuing the same. Franchisor's right to seek injunctive relief will not affect the parties' waiver of jury trial. Franchisor's rights herein shall include pursuing injunctive relief in any court of competent jurisdiction.
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, Aplus has the right to seek injunctive relief against franchisees. Specifically, if a franchisee breaches any of the restrictions outlined in Sections 6, 7, and 17 of the franchise agreement, Aplus is entitled to seek injunctive relief from a court of competent jurisdiction. This relief can take the form of a restraining order, a preliminary injunction, or a permanent injunction.
This right to seek injunctive relief is in addition to any other remedies available to Aplus under the law or in equity. Aplus does not need to post security or bond to obtain such relief. Furthermore, the franchisee is responsible for Aplus's reasonable attorneys' fees incurred in pursuing the injunctive relief. The right to seek injunctive relief does not affect the parties' waiver of a jury trial.
This clause highlights the importance of adhering to the restrictions outlined in Sections 6, 7, and 17 of the Aplus franchise agreement. Failure to comply with these sections could result in Aplus seeking immediate legal intervention to prevent further breaches, and the franchisee would likely be responsible for covering Aplus's legal costs in such actions. This is a common practice in franchising, as franchisors need to protect their brand standards and trade secrets.