In which locations can Black Bear Diner bring an action for injunctive relief?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
As any breach by Developer of any of the covenants contained in this section would result in irreparable injury to Franchisor, and as the damages arising out of any such breach would be difficult to ascertain, Developer agrees that, in addition to all other remedies provided by law or in equity, Franchisor shall be entitled to an injunction prohibiting any conduct by Developer in violation of this Section 10.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner is entitled to seek an injunction against a developer to prohibit conduct violating Section 10 of the agreement. This section refers to post-term covenants, which restrict a developer from engaging in similar restaurant businesses within the Development Area or within 25 miles of any Black Bear Diner restaurant after the agreement expires or terminates.
This means that if a developer breaches the post-term covenants, such as opening a competing restaurant within the restricted area, Black Bear Diner can pursue legal action to stop the developer from continuing that business. This remedy is available because the FDD states that such a breach would cause irreparable injury to Black Bear Diner, and the resulting damages would be difficult to calculate.
This clause protects Black Bear Diner's market and brand integrity by preventing former developers from leveraging their knowledge and experience to directly compete with the franchise shortly after their involvement ends. The injunctive relief serves as a strong deterrent against unfair competition and helps maintain the value of the Black Bear Diner franchise system.