In the event of a breach of covenants, what immediate equitable remedies is City Publications entitled to seek?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
As any breach by Franchisee of any of the covenants contained in this Section would result in irreparable injury to Franchisor, and as the damages arising out of any such breach would be difficult to ascertain, Franchisee agrees that, in addition to all other remedies provided by law or in equity, Franchisor, in the event of a breach or threatened breach of the covenants herein contained, shall be entitled to seek immediate equitable remedies including, but not limited to, restraining orders, preliminary and permanent injunctions in order to prevent Franchisee, its partners, members, officers, directors or employees from continuing to breach the covenants contained in this Section 17.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, if a franchisee breaches any covenants within Section 17 of the agreement, City Publications is entitled to seek immediate equitable remedies. These remedies are available because a breach would result in irreparable injury to City Publications, and the resulting damages would be difficult to determine.
Specifically, City Publications can seek restraining orders, preliminary injunctions, and permanent injunctions. These legal measures aim to prevent the franchisee, including their partners, members, officers, directors, or employees, from continuing to violate the covenants outlined in Section 17.
This clause highlights the importance City Publications places on the restrictive covenants within the franchise agreement. It also emphasizes the potential legal actions a franchisee may face for non-compliance, beyond monetary damages. Prospective franchisees should carefully review Section 17 to understand the covenants and their implications.