What are the consequences if a Beverly Anns Cookie franchisee violates any of the Brand Covenants?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
any part of the non-competition provisions contained herein shall not render any other part unenforceable. You acknowledge and agree that: (i) the terms of this Franchise Agreement are reasonable both in time and in scope of geographic area; (ii) our use and enforcement of covenants similar to those described above with respect to other "Beverly Ann's Cookie Truck" franchisees benefits you and the Owners because it prevents others from unfairly competing with your Franchised Business; and (iii) you and the Owners have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Franchise Agreement. You hereby waive any right to challenge the terms of the Brand Covenants as being overly broad, unreasonable or otherwise unenforceable.
We have the right, in our sole discretion, to unilaterally reduce the scope of all or part of any Brand Covenant without your consent (before or after any dispute arises), effective when we give you written notice of this reduction and you agree to comply with any modifications to the Brand Covenants .
Breach of Covenants
You agree that failure to comply with the terms of Brand Covenants will cause substantial and irreparable damage to us and/or other "Beverly Ann's Cookie Truck" franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of the terms of this Section 18 will entitle us to injunctive relief. We may apply for such injunctive relief without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). Notwithstanding the foregoing, if a court requires the filing of a bond, the parties agree that the amount of the bond shall not exceed $1,000.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, if a franchisee fails to comply with the Brand Covenants, it will cause substantial and irreparable damage to Beverly Anns Cookie and/or other franchisees. As a result, Beverly Anns Cookie is entitled to injunctive relief, which they may apply for without bond, but upon due notice. The franchisee's sole remedy, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held. If a court requires the filing of a bond, the parties agree that the amount of the bond shall not exceed $1,000.
Beverly Anns Cookie can combine remedies available at law or in equity, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense, or cause of action the franchisee may have against Beverly Anns Cookie cannot be used as a defense against their enforcement of the Brand Covenants.
Additionally, if a Beverly Anns Cookie franchisee infringes upon another franchisee's territory, they are subject to fines. The first violation results in a $1,000 fine plus the amount of applicable products or services invoiced while infringing. A second violation and subsequent violations incur a $5,000 fine plus the amount of applicable products or services invoiced while infringing. These fines are payable to Beverly Anns Cookie within five days after the infringement is proven. The violations are counted cumulatively over the life of the Franchised Business, regardless of when they occur.