Under what condition can Brueggers Bagels seek injunctive relief against a franchisee?
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, Brueggers Bagels can seek injunctive relief against a franchisee if the franchisee violates the terms of Section 19 of the franchise agreement. This section likely pertains to restrictions on competition, though the specific details of Section 19 are not provided in the excerpt.
Brueggers Bagels asserts that a violation of these competitive restrictions would cause irreparable harm for which monetary compensation would not be an adequate remedy. Therefore, the franchisee consents to a court order (injunction) that would prohibit any actions that violate Section 19. This injunctive relief is in addition to any other legal remedies Brueggers Bagels might pursue.
Furthermore, if a franchisee or any person bound by Section 19 fails to comply with the competitive restrictions and Brueggers Bagels successfully obtains enforcement through a legal proceeding, the obligations under the breached restriction will remain in effect for one year after the date the person begins to comply with the court order. This ensures that the franchisee remains bound by the restrictions even after legal action is taken to enforce them.