Besides monetary damages, what other legal recourse does Buildingstars have if a franchisee violates the restrictive covenant?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ement are illegal, invalid or unenforceable, then, the
court so holding shall reduce the limitation necessary to render such restriction enforceable by such court. BUILDINGSTARS shall have the right to reduce the scope of any covenant contained in Sections IX and X, without FRANCHISEE'S consent, effective immediately upon receipt by FRANCHISEE of written notice thereof; and FRANCHISEE shall comply with any covenant as so modified. In addition to any other remedies available at law or equity, BUILDINGSTARS shall have the right to injunctive relief for a violation or threatened violation of the foregoing. FRANCHISEE acknowledges that the restrictions imposed in this Section are reasonable and their enforcement will not cause an undue burden upon FRANCHISEE'S ability to earn a livelihood.
The terms of this Section X are assignable by BUILDINGSTARS and shall inure to the benefit of BUILDINGSTARS, as well as its successors and assigns.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars' 2025 Franchise Disclosure Document, besides monetary damages, Buildingstars has the right to injunctive relief for a violation or threatened violation of the restrictive covenant. This means Buildingstars can seek a court order to stop a franchisee from violating the terms of the agreement. The franchisee acknowledges that the restrictions imposed are reasonable and their enforcement will not cause an undue burden upon the franchisee's ability to earn a livelihood.
Additionally, in the event of any breach or threatened breach of the Franchise Agreement, Buildingstars is immediately entitled to injunctive relief, including a temporary restraining order, preliminary injunction, and specific performance. This is in addition to any other remedies available to Buildingstars. Buildingstars does not need to show or prove any actual damage sustained to obtain injunctive relief and is not required to post a bond if it seeks injunctive relief.
These measures provide Buildingstars with significant legal tools to enforce the restrictive covenants and protect its business interests. Injunctive relief can be a powerful remedy, as it can quickly halt any actions that violate the agreement, preventing further damage to Buildingstars. The ability to obtain such relief without posting a bond further streamlines the process and reduces the financial burden on Buildingstars when enforcing the agreement.