What is the consequence of violating the transfer or assignment terms of the Bang Cookies franchise agreement?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
and (v) you will stop using the Confidential Information immediately at our request or demand. You will not use the Confidential Information for any purpose other than for the performance of your duties on behalf of us and in accordance with the scope of your work with us.
- 5. Reasonableness of Covenants and Restrictions. You agree that: the terms of this Agreement are reasonable and fair and that you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. You hereby waive any right to challenge the terms of this Agreement as being overly broad, unreasonable or otherwise unenforceable.
6. Breach. You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our franchisor Bang Cookies Franchise LLC, and other Bang Cookies franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us or our Franchisor Bang Cookies Franchise LLC to injunctive relief. You agree that we and/or our Franchisor Bang Cookies Franchise LLC may apply for such injunctive relief, without bond, but upon due notice, in addition
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, failure to comply with the terms of the franchise agreement, including those related to transfer or assignment, can result in irreparable harm to Bang Cookies and its franchisees. In such cases, Bang Cookies is entitled to seek injunctive relief. This means Bang Cookies can ask a court to order the franchisee to stop the violating behavior.
The FDD states that Bang Cookies can pursue this injunctive relief without needing to post a bond, although this is subject to due notice. If a court does require a bond, the franchisee agrees that the bond amount will not exceed $1,000. The franchisee's sole remedy, should an injunction be issued, is to seek the dissolution of the injunction. The franchisee expressly waives any claims for damages resulting from a wrongfully issued injunction.
The remedies available to Bang Cookies, including injunctive relief, are not exclusive. Bang Cookies can combine these remedies with others available under the agreement, at law, or in equity. These may include specific performance (forcing the franchisee to fulfill the agreement) and recovery of monetary damages to compensate for losses suffered due to the breach.