Does the Brueggers Bagels franchise agreement prevent the franchisor from seeking injunctive relief?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
19.3. Enforcement.
- 19.3.1. We have the right, in our sole discretion, to reduce the scope of any restriction in Sections 19.1 and 19.2 by giving you written notice.
- 19.3.2. You agree that the existence of any claims you may have against us, whether or not arising from this Agreement, will not constitute a defense to our enforcement of this Section 18.
- 19.3.3. You acknowledge that your violation of the terms of this Section 19 would result in irreparable injury to us for which no adequate remedy at law may be available, and you accordingly consent to the issuance of an injunction prohibiting any conduct by you in violation of the terms of this Section 19. Injunctive relief will be in addition to any other remedies we may have.
- 19.3.4. If you or any other person bound by this Section 19 fails or refuses to abide by any of the foregoing restrictions on competition, and we obtain enforcement in a judicial or arbitration proceeding, the obligations under the breached restriction will continue in effect for a period ending one (1) year after the date the person begins to comply with the order enforcing the restriction.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, the franchise agreement does not prevent the franchisor from seeking injunctive relief. Specifically, Section 19.3.3 of the agreement states that a franchisee's violation of the terms within Section 19, which pertains to covenants against competition, would cause irreparable injury to Brueggers Bagels.
Because monetary damages may not adequately compensate for this type of injury, the agreement explicitly states that Brueggers Bagels is entitled to seek an injunction against the franchisee to prohibit any conduct that violates the terms of Section 19. This injunctive relief is in addition to any other remedies that Brueggers Bagels may pursue.
Furthermore, Section 19.3.4 outlines that if a franchisee or any person bound by Section 19 fails to comply with the restrictions on competition, and Brueggers Bagels obtains enforcement through a judicial or arbitration proceeding, the obligations under the breached restriction will remain in effect for one year after the person begins to comply with the order enforcing the restriction. This clause reinforces Brueggers Bagels's ability to protect its interests through injunctive relief and extends the duration of the restrictions if a violation occurs.