Are the remedies granted to Chem Dry in the assignment enforceable concurrently or successively with other remedies?
Chem_Dry Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Election of Remedies: It is understood and agreed that the provisions set forth in this Assignment are deemed a special remedy given to the Franchisor and are not deemed to exclude any of the remedies granted in the Franchise Agreement or any other agreement between the Franchisor and the Franchisee, but are deemed an additional remedy and shall be cumulative with the remedies therein and elsewhere granted to the Franchisor, all of which remedies are enforceable concurrently or successively.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to Chem Dry's 2024 Franchise Disclosure Document, the remedies granted to Chem Dry in the assignment are in addition to other remedies and can be enforced either concurrently or successively. This means Chem Dry has multiple avenues for recourse if a franchisee defaults, and it can pursue these options simultaneously or one after the other.
This provision offers Chem Dry significant flexibility in addressing franchisee defaults. Rather than being limited to a single course of action, Chem Dry can choose the most effective strategy based on the specific circumstances. This could involve pursuing multiple remedies at the same time to maximize recovery or starting with one remedy and then pursuing others if the initial approach is unsuccessful.
For a prospective Chem Dry franchisee, this clause highlights the importance of understanding all obligations under the franchise agreement and related documents. Defaulting on the lease or franchise agreement could trigger multiple remedies, potentially leading to a more severe financial impact. Franchisees should ensure they have sufficient resources and a solid business plan to meet their obligations and avoid default.
This type of clause is relatively common in franchise agreements, as franchisors seek to protect their interests and ensure compliance with the terms of the agreement. Franchisees should carefully review all remedies available to the franchisor and understand the potential consequences of non-compliance.