Regarding covenants not to compete in the Bonchon Franchise Agreement, what does a franchisee consent to regarding injunctions?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
I acknowledge that violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to Franchisor and Franchisee for which no adequate remedy at law will be available. Accordingly, I hereby consent to the entry of an injunction procured by Franchisor or Franchisee (or both) prohibiting any conduct by me in violation of the terms of those covenants not to compete and/or restrictions on the use of confidential information set forth in this agreement. I expressly agree that it may conclusively be presumed in any legal action that any violation of the terms of these covenants not to compete was accomplished by and through my unlawful utilization of Franchisor's Confidential Information. Further, I expressly agree that any claims I may have against Franchisor will not constitute a defense to Franchisor's enforcement of the covenants not to compete set forth in this Agreement. I further agree to pay all costs and expenses (including reasonable attorneys' and experts' fees) incurred by Franchisor in connection with the enforcement of those covenants not to compete set forth in this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees acknowledge that violating the non-compete covenants within the agreement would inflict immediate and irreparable harm on both Bonchon and its franchisees. Because of this, franchisees consent to the entry of an injunction. This injunction, if pursued by Bonchon or another franchisee, would legally prohibit any actions by the franchisee that violate the terms of the non-compete agreements or restrictions on the use of confidential information.
Furthermore, the franchisee agrees that in any legal action, any violation of the non-compete terms can be presumed to be accomplished through the unlawful use of Bonchon's confidential information. The franchisee also agrees that any claims they might have against Bonchon will not serve as a defense against Bonchon enforcing the non-compete agreements.
In addition to the injunction, the franchisee is responsible for covering all costs and expenses, including reasonable attorney and expert fees, that Bonchon incurs while enforcing these non-compete agreements. This means a franchisee found in violation could face not only a court order preventing them from competing but also a significant financial burden to cover Bonchon's legal costs.