Does the Byrider franchise agreement state that violating the non-compete covenants will cause irreparable harm to the company?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.4 Enforcement of Covenants Not To Compete. The Franchisee acknowledges that violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to the Company for which no adequate remedy at law will be available. Accordingly, the Franchisee hereby acknowledges the Company's right to seek an injunction and agrees not to contest any application by the Company for such injunction to prohibit any conduct by the Franchisee in violation of the terms of those covenants not to compete set forth in this Agreement. The Franchisee expressly agrees that it may be conclusively presumed that a violation of the terms of said covenants not to compete was accomplished by and through the Franchisee's unlawful utilization of the Company's Confidential Information, know-how, methods and procedures. Further, the Franchisee expressly agrees that the existence of any claims it may have against the Company, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by the Company for the covenants not to compete set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the franchise agreement specifies that violating the non-compete covenants would cause immediate and irreparable harm to Byrider. The agreement states that no adequate remedy at law would be available to Byrider in such a case. Therefore, Byrider has the right to seek an injunction against the franchisee and the franchisee agrees not to contest any application for such an injunction.
Furthermore, the agreement stipulates that any violation of the non-compete covenants can be conclusively presumed to result from the franchisee's unlawful use of Byrider's confidential information, know-how, methods, and procedures. This presumption strengthens Byrider's ability to obtain an injunction.
The Byrider franchise agreement also clarifies that any claims the franchisee may have against Byrider, whether related to the agreement or not, will not serve as a valid defense against Byrider's enforcement of the non-compete covenants. This provision underscores the importance Byrider places on protecting its interests through these covenants.