Are the remedies available to City Publications in the case of an understatement in payments in addition to other remedies?
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, in the event of a breach of covenants within Section 17 of the agreement, City Publications is entitled to seek immediate equitable remedies in addition to all other remedies provided by law or equity. These equitable remedies include restraining orders, preliminary and permanent injunctions. This is because any breach by the franchisee would result in irreparable injury to City Publications, and the damages arising from such a breach would be difficult to ascertain.
This means that if a City Publications franchisee violates the terms of the agreement, particularly those covenants outlined in Section 17, City Publications has the right to pursue legal actions beyond just monetary compensation. They can seek court orders to immediately stop the franchisee from continuing the breaching behavior. This is in addition to any other legal remedies available to them.
For a prospective franchisee, this highlights the importance of fully understanding and adhering to the covenants in the franchise agreement. Breaching these covenants could lead to immediate legal action, including injunctions, which could significantly impact the franchisee's ability to operate their business. The FDD emphasizes that these restrictions are considered essential for protecting City Publications and the franchise system.