Which articles are referenced in the Buns On Fire agreement where injunctive proceedings may be instituted?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
- The second sentence of Section 10.3 of the Franchise Agreement is hereby amended to read as follows:
"Accordingly, you consent to the seeking of an injunction prohibiting any conduct by you in violation of the terms of the covenants not to compete set forth in this Agreement."
- The third and fourth sentences of Section 24.11 of the Franchise Agreement is amended to read as follows:
"You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of The Buns on Fire System or Proprietary Marks, during or after the period of this Agreement, we will be entitled to seek both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies which we may have at law. You consent to the seeking of these temporary and permanent injunctions."
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, there are two sections of the franchise agreement that allow Buns On Fire to seek injunctive relief against a franchisee.
The first is Section 10.3, which pertains to covenants not to compete. If a franchisee violates the terms of these covenants, Buns On Fire can seek an injunction to stop the franchisee's actions. This means that Buns On Fire can go to court to prevent a former franchisee from engaging in activities that compete with the Buns On Fire business, such as opening a similar restaurant nearby.
The second is Section 24.11, which addresses non-compliance or unauthorized use of the Buns On Fire system or proprietary marks. If a franchisee engages in such activities during or after the agreement, Buns On Fire is entitled to seek temporary and permanent injunctive relief. This protects Buns On Fire's brand and operational methods by allowing them to legally prevent franchisees from misusing trademarks or operating outside the established system.
These clauses in the Buns On Fire franchise agreement are designed to protect the brand's interests and ensure franchisees adhere to the agreed-upon terms, with injunctive relief available as a legal recourse.