What is the condition that allows Bens Soft Pretzels to seek injunctive relief?
Bens_Soft_Pretzels Franchise · 2025 FDDAnswer from 2025 FDD Document
Do you understand that you are bound by the non-compete covenants (both in-term and post-term)
listed in Subparagraph 10.D and that an injunction is an appropriate remedy to protect the interest of the BEN'S SOFT PRETZELS system if you violate the covenant(s)? Further, do you understand
Check one: () Yes () No. If no, please comment: that the term "you" for purposes of the non-compete covenants is defined broadly in subparagraph 10.D, such that any actions in violation of the covenants by those holding any interest in the franchisee entity may result in an injunction, default and termination of the Franchise Agreement?
Source: Item 22 — CONTRACTS (FDD pages 46–47)
What This Means (2025 FDD)
According to the 2025 Bens Soft Pretzels Franchise Disclosure Document, Bens Soft Pretzels can seek injunctive relief if a franchisee violates the non-compete covenants outlined in Subparagraph 10.D of the franchise agreement. These covenants include both in-term and post-term restrictions, meaning they apply while the franchise agreement is active and after it has ended.
It is important to note that the term "you" in the context of these non-compete covenants is broadly defined. This means that actions violating the covenants by anyone holding an interest in the franchisee entity can lead to an injunction, default, and termination of the Franchise Agreement. This broad definition extends the reach of the non-compete obligations beyond just the franchisee themselves.
This clause emphasizes the importance of understanding and adhering to the non-compete covenants. A prospective franchisee should carefully review Subparagraph 10.D to fully understand the scope of these restrictions and ensure they can comply. Failure to do so could result in legal action, including an injunction, which could significantly impact the franchisee's ability to operate a similar business.