What is the Cinch I.T. franchisee's remedy if an injunction is entered against them?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.7 You acknowledge that Your violation of the terms of this Section 11 would result in irreparable injury to Us for which no adequate remedy at law may be available, and You accordingly consent to the issuance of an injunction by any court of competent jurisdiction or arbitrator having jurisdiction over the Agreement prohibiting any conduct by You in violation of the terms of this Section 11.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
Based on the 2024 Cinch I.T. Franchise Disclosure Document, there is no explicit clause that details a franchisee's remedy if an injunction is entered against them. However, the FDD does state that Cinch I.T. can seek injunctive relief against a franchisee under certain circumstances.
Specifically, section 11.7 states that Cinch I.T. would suffer irreparable injury if a franchisee violates the terms of Section 11, which concerns non-compete and confidentiality. In such cases, Cinch I.T. is entitled to seek an injunction prohibiting the franchisee's violating conduct. The document does not outline any remedies available to the franchisee in the event an injunction is issued against them.
Prospective Cinch I.T. franchisees should seek clarification from the franchisor regarding potential remedies or recourse if an injunction is entered against them. Understanding the circumstances under which an injunction may be sought and the potential consequences is crucial for assessing the risks associated with the franchise agreement.