factual

Can the Casiola Franchisor pursue other legal or equitable remedies in addition to termination?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

see's Owner(s) failure to comply with the restrictive covenants and obligations set forth in this Article 6 will cause irreparable harm to Franchisor and/or other Casiola Business franchisees for which there is no adequate remedy at law. Franchisee agrees that any violation of these Article 6 covenants and obligations by either Franchisee and/or any Owner(s) will entitle Franchisor to injunctive relief. Franchisee agrees that Franchisor may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of Franchisee, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the Franchisee and Franchisor agree that the amount of the bond shall not exceed $1,000. Franchisor's remedies under this Article 6.G.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to Casiola's 2024 Franchise Disclosure Document, Casiola Franchise LLC has several options for legal and equitable remedies, which can be combined with others under the agreement, at law, or in equity.

Specifically, Casiola can seek injunctive relief, without bond (but upon due notice), along with other relief available at equity or law. The franchisee's sole remedy, if such an injunction is entered, is the dissolution of the injunction, if warranted after a hearing. The franchisee expressly waives all claims for damages resulting from the wrongful issuance of any injunction. If a court requires a bond, the amount is capped at $1,000.

In cases of a franchisee's failure to comply with restrictive covenants and obligations, Casiola is entitled to injunctive relief because such a failure would cause irreparable harm to Casiola and its other franchisees, for which there is no adequate remedy at law. These remedies are not exclusive and can be combined with others, including specific performance and recovery of monetary damages. If Casiola hires an attorney or files suit against a franchisee for breach of the agreement and prevails, the franchisee agrees to pay Casiola's reasonable attorney fees and costs.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.