Does the Bhc franchise agreement require a bond or other security to be posted by Bhc when seeking equitable relief for a breach of the non-competition agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to the 2025 Bhc Franchise Disclosure Document, franchisees agree that Bhc can seek injunctive or other equitable relief to prevent breaches of the non-competition agreement without needing to prove actual damages.
Specifically, the franchise agreement states that no bond or other security will be required of Bhc when it seeks equitable relief. The franchisee consents to the issuance of an injunction and the ordering of specific performance. This means that if a franchisee violates the non-competition agreement, Bhc can immediately seek a court order to stop the violation without having to post a bond, which is a sum of money held as security.
This clause favors Bhc, as it streamlines the process for them to enforce the non-competition agreement. A prospective franchisee should understand that they are waiving their right to require Bhc to post a bond, which could potentially protect the franchisee from damages if the injunction is later found to be unwarranted.