What remedies is Bft entitled to if a franchisee violates Article 13?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
protect the legitimate interests of the System and Franchisor. Franchisee further acknowledges and agrees that Franchisee's violation of the terms of this Article 13 will cause irreparable injury to Franchisor for which no adequate remedy at law is available, and Franchisee accordingly agrees that Franchisor shall be entitled to preliminary and permanent injunctive relief and damages, as well as, an equitable accounting of all earnings, profits, and other benefits arising from such violation, which remedies shall be cumulative and in addition to any other rights or remedies to which Franchisor shall be entitled. Franchisee agrees to waive any bond that may be required or imposed in connection with the issuance of any preliminary or provisional relief. Franchisee shall pay all costs and expenses, including, without limitation, reasonable attorneys' fees, incurred by Franchisor in connection with the enforcement of this Article 13. If Franchisee violates any restriction contained in this Article 13, and it is necessary for Franchisor to seek equitable relief, the restrictions contained herein shall remain in effect until two (2) years after such relief is granted. If Franchisee contests the enforcement of Article 13 and enforcement is delayed pending litigation, and if Franchisor prevails, the period of non-competition shall be extended for an additional period equal to the period of time that enforcement of this Article 13 is delayed.
- B. Franchisee agrees that the provisions of this covenant not to compete are reasonable. If, however, any court should find this Article 13 or any portion of this Article 13 to be unenforceable and/or unreasonable, the court is authorized and directed to reduce the scope or duration (or both) of the provision(s) in issue to the extent necessary to render it enforceable and/or reasonable and to enforce the provision so revised.
- C. Franchisor shall have the right, in Franchisor's discretion, to reduce the scope of any covenant not to compete set forth in this Agreement, or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice thereof, and Franchisee shall comply with any covenant as so modified.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to Bft's 2025 Franchise Disclosure Document, if a franchisee violates Article 13, which pertains to non-solicitation covenants, Bft is entitled to specific remedies. Bft states that a violation of Article 13 will cause irreparable injury for which there is no adequate remedy at law.
Bft is entitled to preliminary and permanent injunctive relief, damages, and an equitable accounting of all earnings, profits, and other benefits arising from the violation. These remedies are cumulative and in addition to any other rights or remedies Bft may have. The franchisee also agrees to waive any bond that may be required for preliminary relief.
The franchisee is responsible for all costs and expenses, including reasonable attorneys' fees, incurred by Bft in enforcing Article 13. If Bft seeks equitable relief due to a violation, the restrictions in Article 13 remain in effect for two years after the relief is granted. If the franchisee contests the enforcement and Bft prevails after litigation, the non-competition period will be extended by the duration of the delay caused by the litigation.
Additionally, Bft has the right to reduce the scope of any covenant not to compete without the franchisee's consent by providing written notice. If a court finds any portion of Article 13 unenforceable or unreasonable, the court is authorized to reduce the scope or duration to make it enforceable and reasonable.