Does the Confidentiality and Non-Compete Agreement for Burros Fries specify any financial thresholds related to the enforcement of the agreement?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
emporary 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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- Any failure by us or You to object or to take action with respect to any breach of this Agreement by You shall not operate or be construed as a waiver of or consent to that breach or any later breach by You.
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- THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF CALIFORNIA. THE PARTIES AGREE THAT ANY ACTION BROUGHT BY ANY PARTY AGAINST ANOTHER IN ANY COURT, WHETHER FEDERAL OR STATE, SHALL BE BROUGHT IN CALIFORNIA IN THE JUDICIAL DISTRICT IN WHICH WE HAVE OUR PRINCIPAL PLACE OF BUSINESS;
Source: Item 22 — CONTRACTS (FDD page 53)
What This Means (2024 FDD)
According to the 2024 Burros Fries Franchise Disclosure Document, the Confidentiality and Non-Compete Agreements do not specify any financial thresholds related to their enforcement. However, the agreement does state that in the event of a breach, or threatened breach, Burros Fries is entitled to enforce the agreement and seek remedies, including a temporary or permanent injunction and specific performance of the terms, without needing to show actual harm or provide a bond or security.
The franchisee is responsible for protecting Burros Fries's confidential information at their own expense and must take necessary steps to prevent its release to anyone without a need to know. This obligation extends both during the term of the agreement and after its termination or expiration, requiring ongoing vigilance in safeguarding proprietary information.
Additionally, the franchisee agrees to cover all expenses, including court costs and reasonable legal fees, incurred by Burros Fries in enforcing the agreement. This provision places a financial burden on the franchisee in the event of a dispute, as they may be liable for the franchisor's legal costs in addition to their own, regardless of the outcome of the enforcement action.