In the event of a violation of Article 11, does Bhc have rights and remedies that are cumulative?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
11.3 General Provisions Regarding Non-Competition Covenants.
- (a) Franchisee acknowledges that the restrictions contained in this Article 11 are reasonable and necessary to protect Franchisor's legitimate interests, and in the event of violation of any of these restrictions, Franchisor is entitled to recover damages including, without limitation, Royalties, Marketing and Promotion Fees, Initial Franchise Fee, and other fees that would have been payable if such business were included in the Franchised Business, and an equitable accounting of all earnings, profits and other benefits arising from such violation, which rights and remedies will be cumulative and in addition to any other rights or remedies to which Franchisor is entitled at law or in equity.
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 retains cumulative rights and remedies. Specifically, Article 11 pertains to non-competition covenants. This means that Bhc's legal options are not limited to a single course of action; they can pursue multiple avenues simultaneously.
Bhc is entitled to recover damages including, without limitation, Royalties, Marketing and Promotion Fees, Initial Franchise Fee, and other fees that would have been payable if such business were included in the Franchised Business, and an equitable accounting of all earnings, profits and other benefits arising from such violation. This provision allows Bhc to seek financial compensation for losses resulting from the franchisee's breach of the non-competition agreement.
Furthermore, Bhc can seek both monetary damages and equitable relief, such as injunctions, to prevent further breaches. The agreement also stipulates that no bond or other security is required for Bhc to obtain such equitable relief, streamlining the process for Bhc to enforce the non-competition covenants. This multifaceted approach provides Bhc with significant legal leverage to protect its interests and enforce the terms of the franchise agreement.