In the event of a breach of the Belocal agreement, is Belocal entitled to injunctive relief?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (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. The time periods relating to the obligations described in this Agreement will be tolled during any period of noncompliance.
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- Covenantor agrees to pay all expenses (including court costs and reasonable attorneys' fees and costs) incurred by Franchisor in enforcing this Agreement.
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- Any failure by Franchisor to object to or take action with respect to any breach of any provision of this Agreement by Covenantor will not operate or be construed as a waiver of or consent to that breach or any subsequent breach by Covenantor.
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Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, in the event of a breach of the franchise agreement, Belocal is entitled to injunctive relief. The agreement states that a breach would cause irreparable injury to Belocal, making monetary damages an inadequate remedy. Therefore, Belocal can seek a temporary or permanent injunction and specific performance of the agreement's terms.
This means that if a franchisee violates the agreement, Belocal can go to court to obtain an order that forces the franchisee to stop the violating behavior immediately. This can be particularly important in cases where the franchisee is engaging in activities that could harm Belocal's brand or business, such as disclosing confidential information or operating a competing business.
The franchise agreement specifies that Belocal does not need to demonstrate actual or threatened harm to obtain injunctive relief and is not required to post a bond or other security. Additionally, the franchisee is responsible for covering all expenses, including court costs and reasonable attorney's fees, incurred by Belocal in enforcing the agreement. However, in Minnesota, all sections of the Agreement referencing Belocal's right to obtain injunctive relief are amended to refer to Belocal's right to seek to obtain injunctive relief.