Is Carbones Pizzeria Franchisor entitled to injunctive relief for a breach of the non-compete agreement?
Carbones_Pizzeria Franchise · 2025 FDDAnswer from 2025 FDD Document
for whatever reason, Franchisor shall be free, without any obligations whatsoever to Franchisee, to resell the franchise herein upon such terms and conditions as Franchisor shall desire, and Franchisor shall receive all proceeds of such a sale. Franchisor shall have the right, at the option of Franchisor, to purchase all inventory and usable merchandise identified with the Names and Marks, all of which may be repurchased by Franchisor at the fair wholesale market value thereof. Franchisee agrees that Franchisor may be irreparably harmed in a manner not readily compensated by money damages by any violation by Franchisee of the provisions of this Section, and accordingly Franchisor shall be entitled to injunctive relief from a court of competent jurisdiction to enforce the obligations of Franchisee hereunder, in addition to any other rights Franchisor may have at law or in equity under this Agreement.
17. Dispute Resolution.
Either party may apply for injunctive or other equitable relief to: (i) enforce its right to terminate this Agreement; and (ii) prevent or remedy a breach of this Agreement if such breach could materially impair the goodwill of such party's business, including to enforce the obligations of a party to be performed following the termination of this Agreement and enforcement of the non-competition and confidentiality provisions of this Agreement. Each party shall be entitled to the entry of temporary restraining orders and temporary and permanent injunctions enforcing its aforementioned rights.
Source: Item 23 — RECEIPTS (FDD pages 30–116)
What This Means (2025 FDD)
According to the 2025 Carbones Pizzeria Franchise Disclosure Document, Carbones Pizzeria is entitled to injunctive relief for breaches of the non-compete agreement. Specifically, the agreement states that if a franchisee violates the non-compete agreement outlined in Section 4.a.(2), the period the franchisee must abide by the breached obligation will be extended for two years after the breach ends.
Carbones Pizzeria outlines in Section 16 that the franchisee acknowledges that the franchisor may be irreparably harmed if the franchisee violates the terms of the agreement. Because of this potential irreparable harm, Carbones Pizzeria is entitled to injunctive relief from a court to enforce the franchisee's obligations. This is in addition to any other legal or equitable rights Carbones Pizzeria may have.
Furthermore, Section 17 states that either party can seek injunctive or equitable relief to prevent or remedy a breach of the agreement if the breach could materially impair the goodwill of the party's business. This includes enforcing post-termination obligations like non-competition and confidentiality. The agreement explicitly states that each party is entitled to temporary restraining orders and temporary and permanent injunctions to enforce these rights.