For a Beverly Anns Cookie franchise, what is the liability of the owners for any breach of the Franchise Owner Agreement?
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 the
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if a franchisee fails to comply with the terms of the Brand Covenants, it will cause substantial and irreparable damage to Beverly Anns Cookie and/or other franchisees for which there is no adequate remedy at law. Therefore, Beverly Anns Cookie is entitled to injunctive relief, without bond (though if a court requires a bond, it will not exceed $1,000), upon due notice, in addition to such further and other relief as may be available at equity or law. 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 (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived).
Beverly Anns Cookie states that none of the remedies available to them, at law or in equity, under this Franchise Agreement are mutually exclusive, and may be combined with others, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense or cause of action a franchisee or an Owner may have against Beverly Anns Cookie, regardless of cause or origin, cannot be used as a defense against Beverly Anns Cookie's enforcement of the Brand Covenants.
This means that Beverly Anns Cookie can seek a court order to stop a franchisee from violating the Brand Covenants, and can also pursue other legal remedies such as monetary damages. The franchisee cannot use any claims they have against Beverly Anns Cookie as a defense against the enforcement of the Brand Covenants. This is a significant advantage for Beverly Anns Cookie, as it makes it more difficult for franchisees to challenge the enforcement of the Brand Covenants.