What legal recourse does Cinch I.T. have in the event of a trainee breaching the agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee undertakes to use Franchisee's best efforts to ensure that Trainee acts as required by this Agreement.
Trainee agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions thereof, Franchisor shall be entitled to enforce the provisions of this Agreement against Franchisee and Trainee, and may seek, in addition to any other remedies which are made available to it at law or in equity, including the right to terminate the Franchise Agreement, a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without being required to furnish a bond or other security.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, in the event a trainee breaches the Employee Confidentiality Agreement, Cinch I.T. states it would be irreparably injured and without an adequate remedy at law. Therefore, Cinch I.T. is entitled to enforce the provisions of the agreement against the franchisee and trainee.
In addition to any other remedies available at law or in equity, Cinch I.T. may seek a temporary and/or permanent injunction and a decree for the specific performance of the terms of the agreement. This legal action can be pursued without the requirement of furnishing a bond or other security. The agreement is governed by the laws of the Commonwealth of Massachusetts.
Furthermore, the franchisee is responsible for ensuring the trainee adheres to the requirements of the agreement. The trainee agrees not to engage in any business similar to Cinch I.T. within the United States, nor divert any business or clients of the franchisee to a competitor during their employment. After termination of employment, the trainee is prohibited from diverting business from the franchisee to any competitor for two years without prior written consent from Cinch I.T., unless prohibited by the laws of the state where the franchised business or trainee is located.