Does the Aw franchise agreement state that no adequate remedy at law will be available for violation of the non-compete?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.3 Enforcement of Covenants Not to Compete. You acknowledge that violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to us for which no adequate remedy at law will be available. Accordingly, you hereby acknowledge that we may seek to obtain the entry of an injunction prohibiting any conduct by you or your Owners in violation of the terms of the covenants not to compete set forth in this Agreement. You expressly agree that it may conclusively be presumed that any violation of the terms of said covenants not to compete was accomplished by and through your unlawful use of our Confidential Information. Further, you expressly agree that the existence of any claims you may have against us, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by us of the covenants not to compete set forth in this Agreement. You further agree to pay all costs and expenses (including reasonable attorneys' and experts' fees) incurred by the us in connection with the enforcement of those covenants not to compete set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that a violation of the non-compete covenants would cause immediate and irreparable harm to Aw, for which monetary damages would not be sufficient. Therefore, Aw is entitled to seek an injunction against the franchisee to prevent any actions that violate the non-compete terms.
This means that if a franchisee breaches the non-compete agreement, Aw can pursue legal action to immediately stop the franchisee's violating conduct, rather than only seeking monetary compensation after the damage has occurred. The agreement also specifies that any claims the franchisee may have against Aw will not be a valid defense against the enforcement of the non-compete agreement.
Furthermore, the franchisee is responsible for covering all costs and expenses, including reasonable attorney and expert fees, that Aw incurs while enforcing the non-compete covenants. This provision underscores the seriousness with which Aw views violations of the non-compete agreement and the potential financial burden for franchisees who breach these terms.