Does the Confidentiality and Non-Compete Agreement for Burros Fries mention any remedies for breach of the agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
onstruction as of the expiration or termination of, or the transfer of all or your interest in, the Franchise Agreement.
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- You undertake to use your best efforts to ensure that your staff acts as required by this Agreement.
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- You agree that in the event of a breach of this Agreement, we would be irreparably injured and be without an adequate remedy at law. Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, we shall be entitled to enforce this Agreement and shall be entitled, in addition to any other remedies which are available to it at law or in equity, including the right to terminate the Franchise Agreement, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security.
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- You agree to pay all expenses (including court costs and reasonable legal fees) incurred by us and You in enforcing this Agreement.
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Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, the agreement specifies remedies available to Burros Fries in the event a franchisee breaches the confidentiality and non-compete clauses.
The document states that a breach of the agreement would cause irreparable injury to Burros Fries, for which there may not be an adequate remedy at law. Therefore, Burros Fries is entitled to enforce the agreement through a temporary or permanent injunction, as well as a decree for specific performance of the agreement's terms. This can be pursued without needing to demonstrate actual or threatened harm or posting a bond or security.
Furthermore, the franchisee is responsible for covering all expenses, including court costs and reasonable legal fees, incurred by Burros Fries in enforcing the agreement. The document also clarifies that any failure by Burros Fries to object to or take action regarding a breach does not constitute a waiver of rights concerning that breach or any future breaches.
These stipulations are fairly standard in franchise agreements, as franchisors need to protect their brand, trade secrets, and customer relationships. The ability to seek injunctive relief is particularly important, as it allows Burros Fries to quickly stop a franchisee from engaging in activities that could harm the business.