In the event of a breach of the agreement, can Christian Brothers Automotive seek injunctive relief?
Christian_Brothers_Automotive Franchise · 2025 FDDAnswer from 2025 FDD Document
ant. Franchisee expressly agrees to be bound by any lesser covenant
subsumed within the terms of Section 16 of this Agreement as if the resulting
covenant were separately stated in and made a part hereof.
(e) A breach or violation of the Covenants Not to Compete contained in Section 16 of
this Agreement by Franchisee shall entitle the Franchisor, as a matter of right,
without the posting of any bond, to an injunction issued by any court of competent
jurisdiction, restraining any further or continued breach or violation of this
covenant.
Source: Item 23 — RECEIPTS (FDD pages 76–372)
What This Means (2025 FDD)
According to the 2025 Christian Brothers Automotive Franchise Disclosure Document, Christian Brothers Automotive is entitled to seek injunctive relief in the event that a franchisee violates the covenants not to compete outlined in Section 16 of the agreement. This means that Christian Brothers Automotive can pursue a court order to stop the franchisee from continuing the prohibited behavior.
The FDD specifies that Christian Brothers Automotive is entitled to this injunction "as a matter of right, without the posting of any bond." This suggests that the court is expected to grant the injunction readily upon proof of the breach, and Christian Brothers Automotive does not need to provide a financial guarantee to cover potential damages to the franchisee if the injunction is later found to be unwarranted. The right to seek an injunction is in addition to any other remedies Christian Brothers Automotive may pursue.
This clause is designed to protect Christian Brothers Automotive's interests by preventing franchisees from unfairly competing or disclosing confidential information. For a prospective franchisee, this highlights the importance of fully understanding and adhering to the non-compete obligations within the franchise agreement. Failure to comply can result in immediate legal action and restrictions on business activities.