In the event of a breach of the Belocal agreement, is Franchisor 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.
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 or attempted breach of the franchise agreement, Belocal is entitled to a temporary and/or permanent injunction. This means that Belocal can seek a court order to stop a franchisee from continuing the breaching behavior. This right is in addition to any other legal or equitable remedies available to Belocal.
Belocal does not need to demonstrate actual or threatened harm to obtain an injunction, nor is it required to post a bond or other security. This provision makes it easier and faster for Belocal to obtain injunctive relief compared to standard legal proceedings, where demonstrating harm and posting a bond are often necessary prerequisites.
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. This suggests that while Belocal retains the right to pursue injunctive relief, the process or conditions for obtaining it may be subject to greater scrutiny or require additional steps under Minnesota law.