In the event of a breach of the non-compete covenants, is Cinnaholic Franchisor entitled to injunctive relief?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee further understands and acknowledges the difficulty of ascertaining monetary damages and the irreparable harm that would result from breach of these covenants.
If any part of this restriction is found to be unreasonable in time or distance, such time or distance may be reduced by appropriate order of the court to that deemed reasonable.
Franchisor shall, as a matter of course, receive injunctive relief to enforce such covenants in addition to any other relief to which it may be entitled at law or in equity.
Franchisor shall receive such injunctive relief without the necessity of posting bond or other security, such bond or other security being hereby waived.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, Cinnaholic is entitled to injunctive relief to enforce non-compete covenants. The agreement states that franchisees acknowledge the difficulty of determining monetary damages and the irreparable harm that would result from breaching these covenants. This acknowledgment strengthens Cinnaholic's ability to seek injunctive relief.
Specifically, Cinnaholic is entitled to receive injunctive relief as a standard procedure to enforce these covenants. This means that if a franchisee violates the non-compete agreement, Cinnaholic can ask a court to order the franchisee to stop the violating behavior immediately. This remedy is in addition to any other legal or equitable remedies available to Cinnaholic.
Furthermore, Cinnaholic is entitled to receive injunctive relief without needing to post a bond or any other security. Typically, when a party seeks an injunction, they may be required to provide a bond to cover potential damages to the other party if the injunction is later found to be unwarranted. However, Cinnaholic's franchisees waive this requirement, making it easier and less costly for Cinnaholic to obtain an injunction to enforce the non-compete covenants.
This provision is significant for prospective franchisees because it highlights the seriousness with which Cinnaholic views the non-compete obligations. It also demonstrates Cinnaholic's commitment to protecting its business interests and the interests of its other franchisees by swiftly addressing any breaches of the non-compete agreement.