What specific rights or property does Cinch I.T. seek to protect through injunctive relief?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to the 2024 Cinch I.T. Franchise Disclosure Document, Cinch I.T. has the right to seek specific performance and injunctive relief against threatened conduct that will cause them loss or damages under customary equity rules. Specifically, Cinch I.T. states that any failure of a franchisee to comply with the requirements of Sections 25, 26, and/or 27 of the agreement will cause irreparable injury to Cinch I.T., entitling them to seek specific performance and/or an injunction against any violation of such requirements. The franchisee is responsible for all court costs and reasonable attorney's fees incurred by Cinch I.T. in obtaining specific performance or an injunction. These remedies are in addition to any other legal or equitable remedies that Cinch I.T. may possess.
Furthermore, the franchisee agrees that Cinch I.T. will not be required to post a bond to obtain any injunctive relief. The franchisee's only remedy if an injunction is entered against them is to seek the dissolution of that injunction, if warranted, upon due hearing, while expressly waiving all claims for damages due to the wrongful issuance of such injunction. Additionally, should legal proceedings be brought against the franchisee to enforce any non-competition covenant or for failure to maintain confidentiality and protect against infringement, the period of restriction will begin on the date of entry of an order granting Cinch I.T. injunctive relief and will continue uninterrupted for the entire period of restriction.
This means that Cinch I.T. can take immediate legal action to prevent a franchisee from violating the franchise agreement, particularly concerning non-competition, confidentiality, and intellectual property rights. This clause is designed to protect Cinch I.T.'s business interests and brand reputation, ensuring franchisees adhere to the agreed-upon terms and do not engage in activities that could harm the franchise system. The franchisee bears the financial burden of legal costs if they are found in violation, and their ability to seek damages from Cinch I.T. for any wrongly issued injunction is waived.