If a franchisee breaches the agreement, what does this permit Bang Cookies to do?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
nformation; 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, a franchisee's failure to comply with the terms of the agreement will cause irreparable harm to Bang Cookies and its other franchisees, for which there is no adequate remedy at law. In such cases, Bang Cookies is entitled to injunctive relief. Bang Cookies may apply for injunctive relief without bond, but upon due notice. The franchisee's sole remedy, if an injunction is entered, will be the dissolution of such injunction, if warranted, upon a duly held hearing. The franchisee expressly waives all claims for damages due to the wrongful issuance of any injunction.
If a court requires a bond, the franchisee agrees that the bond amount will not exceed $1,000. The remedies available to Bang Cookies are not exclusive and can be combined with others under the agreement, at law, or in equity, including injunctive relief, specific performance, and recovery of monetary damages.
This means that if a Bang Cookies franchisee violates the franchise agreement, Bang Cookies can seek a court order (injunction) to stop the franchisee from continuing the harmful behavior. This is in addition to any other legal remedies Bang Cookies might pursue, such as suing for monetary damages or demanding specific performance of the agreement. The franchisee has limited recourse in the event of an injunction, primarily being able to argue for its dissolution at a hearing. The relatively low bond amount of $1,000 suggests Bang Cookies aims to make it easier to obtain injunctive relief quickly.