What recourse does Buona have if a franchisee violates the non-compete covenants?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.4 Enforcement of Covenants Not to Compete. You acknowledge that violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to us for which no adequate remedy at law will be available. Accordingly, you hereby acknowledge that we may seek to obtain the entry of an injunction prohibiting any conduct by you or your Owners in violation of the terms of the covenants not to compete set forth in this Agreement. You expressly agree that it may conclusively be presumed that any violation of the terms of said covenants not to compete was accomplished by and through your unlawful use of the Confidential Information. Further, you expressly agree that the existence of any claims you may have against us, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by us of the covenants not to compete set forth in this Agreement. You further agree to pay all costs and expenses (including reasonable attorneys' and experts' fees) incurred by us in connection with the enforcement of those covenants not to compete set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, if a franchisee violates the non-compete covenants, Buona may seek an injunction against the franchisee or their owners to stop the prohibited conduct. The FDD states that a violation of the non-compete covenants would cause immediate and irreparable harm to Buona, making legal remedies inadequate.
Buona may presume that any violation of the non-compete terms involves the franchisee's unlawful use of confidential information. The existence of any claims the franchisee may have against Buona does not serve as a defense against Buona enforcing the non-compete agreements.
Furthermore, the franchisee is responsible for covering all costs and expenses, including reasonable attorney and expert fees, that Buona incurs while enforcing the non-compete covenants outlined in the agreement. These measures are designed to protect Buona's interests and confidential information, ensuring franchisees honor their commitments even if they have other grievances against the company.