In the event of a covenant violation by a Buona franchisee, is Buona entitled to injunctive relief?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.8 Injunctive Relief. The parties acknowledge that it will be difficult to ascertain with any degree of certainty the amount of damages resulting from a breach by Franchisee of any of the covenants contained in this Article XIV. It is further agreed and acknowledged that any violation by Franchisee of any of said covenants will cause irreparable harm to Franchisor. Accordingly, Franchisee agrees that upon proof of the existence of a violation of any said covenants, Franchisor will be entitled to injunctive relief against Franchisee in any court of competent jurisdiction having authority to grant such relief, together with all costs and reasonable attorneys' fees incurred by Franchisor in bringing such action.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona has the right to seek injunctive relief against a franchisee in the event of a covenant violation. Specifically, the FDD states that because it would be difficult to determine the exact amount of damages resulting from a franchisee's breach of the covenants outlined in Article XIV, any violation by the franchisee will cause irreparable harm to Buona.
Therefore, upon providing proof of a violation of any of the covenants, Buona is entitled to injunctive relief against the franchisee. This relief can be pursued in any court with the authority to grant it. In addition to injunctive relief, Buona is entitled to all costs and reasonable attorney's fees incurred while pursuing the action.
This clause emphasizes the importance Buona places on franchisees adhering to the covenants outlined in the franchise agreement. It also serves as a strong deterrent against potential breaches, as franchisees could face immediate legal action and financial penalties in the event of non-compliance. Prospective franchisees should carefully review Article XIV and understand the full scope of their obligations to avoid potential covenant violations and the resulting legal consequences.