Besides monetary damages, what other remedies does Bhc have against a franchisee who violates Article 11?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further agrees that a breach of the confidentiality and non-competition covenants set forth above and, in the Confidentiality, and Non-Competition Agreement (see Exhibit 4 to this Franchise Agreement) will cause immediate and irreparable damage to Franchisor that would be impossible or inadequate to measure and calculate and could not be fully remedied by monetary damages.
Accordingly, Franchisor has the right to specifically enforce this Agreement and seek injunctive or other equitable relief as may be necessary or appropriate to prevent such breach or continued breach without the necessity of proving actual damages by reason of any such breach or threatened breach of this Agreement.
Franchisee further agrees that no bond or other security will be required in obtaining such equitable relief and hereby consents to the issuance of such injunction and to the ordering of specific performance.
Franchisee further acknowledges that such remedies are in addition to any other rights or remedies, whether at law or in equity, which may be available to Franchisor, including monetary damages.
- (c) This Article 11 applies to Franchisee, all Principal Equity Operators, and Franchisee's General Manager.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, in the event of a violation of Article 11, Bhc can seek remedies beyond monetary damages. Specifically, Bhc has the right to specifically enforce the agreement and pursue injunctive or other equitable relief to prevent a breach or continued breach of the agreement. This means Bhc can ask a court to order the franchisee to stop the violating behavior.
Bhc does not need to prove actual damages to obtain this injunctive relief. Additionally, the franchisee consents to the issuance of an injunction and the ordering of specific performance, and no bond or other security is required from Bhc to obtain such equitable relief. This provides Bhc with a streamlined process to quickly address breaches of the non-competition covenants.
This remedy is in addition to any other rights or remedies Bhc may have, whether at law or in equity, including monetary damages. Article 11 applies not only to the franchisee but also to all Principal Equity Operators and the franchisee's General Manager, making them equally responsible for adhering to the non-competition terms.