Under what circumstances does the Boulder Designs franchisee consent to the *ex parte* entry of an injunction?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that any threatened or actual failure to comply with the requirements of this Article 17 would cause Franchisor to suffer immediate and irreparable injury for which no adequate remedy at law may be available, and Franchisee hereby accordingly consents to the ex parte entry of an injunction prohibiting any conduct by Franchisee in violation of the terms of this Article 17. Franchisor may further avail itself of any other legal or equitable rights and remedies which it may have under this Agreement, statute, common law or otherwise.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee consents to the ex parte entry of an injunction if they threaten or actually fail to comply with the requirements outlined in Article 17 of the franchise agreement. This consent acknowledges that such non-compliance would cause immediate and irreparable harm to Boulder Designs, for which monetary compensation would not be an adequate remedy.
This provision means that Boulder Designs can seek a court order to immediately stop a franchisee's actions that violate Article 17, without prior notice to the franchisee. Article 17 likely contains covenants related to protecting Boulder Designs' interests, such as restrictions on operating a competing business during or after the franchise term, or maintaining confidentiality.
For a prospective Boulder Designs franchisee, this highlights the importance of fully understanding Article 17 and the potential consequences of violating its terms. The franchisee essentially waives their right to be notified before an injunction is issued, which could have significant implications for their business operations. It is common for franchise agreements to include clauses that allow franchisors to seek injunctive relief in cases of breach, particularly concerning intellectual property or competitive restrictions, but the ex parte nature of this clause is something a franchisee should carefully consider with their legal counsel.