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What happens if the Franchise Agreement is terminated for a Bor Restoration franchise?

Bor_Restoration Franchise · 2024 FDD

Answer from 2024 FDD Document

  • a. Bring one or more actions for lost profits as measured by the Royalties and other fees that would have been due and payable had breach and default not occurred; penalties and interest as provided for in this Franchise Agreement; and for all other damages sustained by us because of your breach of this Franchise Agreement.
  • b. Accelerate the balance of any outstanding installment obligation due hereunder and bring an action for the entire accelerated balance.
  • c. Bring an action for a temporary or permanent injunction or for specific performance to stop you from engaging in prohibited actions such as (i) improper use of the Marks or System; (ii) unauthorized assignment of the Franchise Agreement; (iii) violation of any of the restrictive covenants; and (iv) your failure to meet or perform your obligations at the expiration, earlier termination or Transfer of this Franchise Agreement.
  • d. Terminate this Franchise Agreement and proceed to enforce our rights under the appropriate provisions. Such termination is effective upon delivery of a notice of termination to you without further action by us.
  • e. We also have the right to refrain from terminating this Franchise Agreement and instead may terminate your franchise rights to operate the Business, enforce our rights to deny you use of the Proprietary Information; and to avail ourselves of any other legal or equitable rights, and to bring an action for any damages, costs (including reasonable attorneys' fees and arbitration costs) or losses suffered by us.
  • f. If you operate the Business after Transfer, repurchase, termination, or expiration; use any of the Marks, Proprietary Information, or any component of the System at such time; violate any covenants that survive such expiration, earlier termination, or Transfer, then in addition to any remedies provided above, and in addition to any other remedies in law or equity (all of which will be cumulative and will not be deemed to be an election of remedies to the exclusion of other remedies), our remedies will include recovery of the greater of, (i) all profits earned by you in the operation of the Business using our Marks or System after such Transfer, repurchase, termination, or expiration; and (ii) all Royalties, advertising contributions, and other amounts which would have been due if such Transfer, Assignment, repurchase, termination, or expiration had not occurred; and (iii) any other remedies available in law or equity.

Source: Item 23 — Receipts (FDD pages 40–202)

What This Means (2024 FDD)

According to Bor Restoration's 2024 Franchise Disclosure Document, if the Franchise Agreement is terminated, Bor Restoration has several potential remedies. They can pursue legal action for lost profits, calculated based on royalties and other fees that would have been due if the breach hadn't occurred, along with penalties and interest as specified in the Franchise Agreement. Bor Restoration can also seek compensation for any other damages they incur due to the breach.

Bor Restoration can accelerate any outstanding installment obligations and demand the entire balance immediately. They can also seek a temporary or permanent injunction or specific performance to prevent prohibited actions, such as misuse of trademarks or the Bor Restoration system, unauthorized assignment of the Franchise Agreement, violation of restrictive covenants, or failure to meet obligations upon termination. Bor Restoration can terminate the Franchise Agreement by delivering a notice of termination, which takes effect immediately without further action.

Even if Bor Restoration chooses not to terminate the agreement, they can still terminate the franchisee's rights to operate the business and deny them the use of proprietary information. They can also pursue any other legal or equitable rights and seek damages, costs, including reasonable attorney's fees and arbitration costs, or losses suffered. If the franchisee continues to operate the business after termination, using Bor Restoration's marks or system, or violates any surviving covenants, Bor Restoration can recover the greater of the profits earned by the franchisee, the royalties and advertising contributions that would have been due, or any other available remedies at law or equity.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.