Can Cinch I.T. seek injunctive relief in a dispute?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
solidated with another proceeding between Us and any other person or entity. No previous course of dealing shall be admissible to explain, modify, or contradict the terms of this Agreement. No implied covenant of good faith and fair dealing shall be used to alter the express terms of this Agreement.
41. INJUNCTIVE RELIEF
- (a) Nothing in this Agreement shall bar Our right to seek specific performance of the provisions of this Agreement and injunctive relief against threatened conduct that will cause Us loss or damages under customary equity rules, including applicable rules for obtaining restraining orders and preliminary injunctions. You specifically acknowledge that any failure by You to comply with the requirements of Sections 25, 26 and/or 27 of this Agreement will cause Us irreparable injury and that We shall be entitled to obtain specific performance of, and/or an injunction against any violation of, such requirements. You agree to pay all court costs and reasonable attorneys' fees incurred by Us in obtaining specific performance of, and/or an injunction against any violation of, the requirements of this Agreement. The foregoing remedies shall be in addition to any other legal or equitable remedies that We may possess.
- (b) You agree that We will not be required to post a bond to obtain any injunctive relief and that Your only remedy if an injunction is entered against You will be to seek the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by reason of the wrongful issuance of such injunction being expressly waived hereby).
- (c) Should legal proceedings be brought against You to enforce any non-competition covenant or for Your failure to maintain confidentiality and protect against infringement, the period of restriction shall be deemed to begin running on the date of entry of an order granting Us injunctive relief and shall continue uninterrupted for the entire period of restriction.
42. DAMAGES AND WAIVER OF JURY TRIAL
The parties waive, to the extent permitted by law, any claim for punitive or exemplary damages against each other, regardless of each parties' respective right to such damages under the choice of law provision herein except with regard to claims involving Our Marks and Our Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, Cinch I.T. retains the right to seek injunctive relief under certain circumstances. Specifically, Cinch I.T. can pursue specific performance of the agreement's provisions and injunctive relief against actions that threaten to cause them loss or damages, following customary equity rules for restraining orders and preliminary injunctions.
For a Cinch I.T. franchisee, this means that Cinch I.T. can seek court orders to compel compliance with the franchise agreement or to prevent actions that could harm the Cinch I.T. brand. The franchisee acknowledges that failure to comply with Sections 25, 26, and/or 27 of the agreement will cause irreparable injury to Cinch I.T., entitling Cinch I.T. to seek specific performance or an injunction against any violation of those sections. The franchisee is also responsible for covering all court costs and reasonable attorney's fees incurred by Cinch I.T. in obtaining such remedies.
The FDD states that Cinch I.T. is not required to post a bond to obtain injunctive relief. The franchisee's sole recourse if an injunction is issued against them is to seek its dissolution, and they expressly waive any claims for damages resulting from the wrongful issuance of the injunction. Furthermore, if legal proceedings are initiated against the franchisee to enforce non-competition covenants or address failures in maintaining confidentiality and protecting against infringement, the period of restriction begins upon the entry of an order granting Cinch I.T. injunctive relief and continues uninterrupted for the entire restriction period.
Cinch I.T. also retains the option to initiate actions for temporary or preliminary injunctive relief or seek other temporary or permanent equitable relief to protect its marks or other rights or property. However, the final determination of the dispute will be decided by arbitration, and court recourse is limited to enforcing the arbitral award.