Does the Belocal agreement specify that the Franchisor is entitled to a permanent injunction in the event of a breach?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
- (C) In the event of a breach of this Agreement, Franchisor would be irreparably injured and without an adequate remedy at law and, therefore, upon any such breach or attempted breach of any provision hereof, Franchisor shall be entitled, in addition to any other remedies which it may have at law or in equity, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the franchise agreement specifies the franchisor's right to seek injunctive relief in the event of a breach. Specifically, Belocal is entitled to a temporary and/or permanent injunction if the franchisee breaches the agreement. This entitlement is in addition to any other legal or equitable remedies available to Belocal.
This means that if a franchisee violates the franchise agreement, Belocal can pursue a court order to compel the franchisee to stop the violating behavior immediately and permanently. This remedy is available without Belocal needing to demonstrate actual or threatened harm or to provide a bond or other security, which are often requirements in legal proceedings.
This clause is designed to protect Belocal's interests by allowing them to quickly and effectively halt any actions by the franchisee that could harm the brand or business. It is fairly common in franchising for franchisors to include such provisions to safeguard their brand standards and business operations.