Can Byrider seek an injunction against a franchisee who violates the non-compete covenants?
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 Byrider's 2025 Franchise Disclosure Document, Byrider can seek an injunction against a franchisee who violates the non-compete covenants. The FDD states that a violation of the covenants not to compete would result in immediate and irreparable injury to Byrider, for which no adequate remedy at law would be available. Therefore, the franchisee acknowledges Byrider's right to seek an injunction.
The franchisee also agrees not to contest any application by Byrider for such an injunction to prohibit any conduct by the franchisee that violates the terms of the non-compete covenants. The franchisee expressly agrees that it may be conclusively presumed that a violation of the terms of said covenants not to compete was accomplished through the franchisee's unlawful utilization of Byrider's confidential information, know-how, methods, and procedures.
Furthermore, the franchisee agrees that the existence of any claims it may have against Byrider, whether or not arising from the Franchise Agreement, will not constitute a defense to the enforcement by Byrider for the covenants not to compete set forth in the agreement. This means that even if a franchisee believes Byrider has wronged them, they cannot use that as a reason to violate the non-compete agreement and avoid an injunction.