What remedies is City Wide entitled to if a franchisee breaches the non-compete agreement?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges, covenants and agrees that CITY WIDE will be entitled to immediate equitable remedies, including but not limited to, restraining orders in order to safeguard such proprietary, confidential, unique and special information of CITY WIDE and that money damages alone would be an insufficient remedy with which to compensate CITY WIDE for any breach of the terms of this Non-Compete Agreement.
Nothing herein shall, however, be construed as prohibiting CITY WIDE from pursuing any other remedies available to CITY WIDE for such breach or threatened breach, including recovery of damages from the franchisee.
Furthermore, unless prohibited by law, CITY WIDE shall be entitled to recover as additional damages all expenses and costs, including reasonable attorneys' fees, incurred by it in pursuing its legal and equitable remedies hereunder, whether suit be brought or not. It is understood that Franchisee shall fully protect, indemnify, and hold CITY WIDE and its employees and agents harmless from any and all claims, demands, suits, losses, liabilities, actions, expenses and/or damages, including reasonable attorneys' fees, arising as a result of a breach of this Agreement by Franchisee.
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, City Wide has several remedies available if a franchisee breaches the non-compete agreement. City Wide is entitled to immediate equitable remedies, including restraining orders, to protect its confidential information, as monetary damages alone may not be sufficient compensation. This means City Wide can quickly seek court intervention to stop the franchisee from continuing the prohibited activity.
In addition to equitable remedies, City Wide can pursue other available remedies, including recovering damages from the franchisee. City Wide can also recover all expenses and costs, including reasonable attorneys' fees, incurred in pursuing legal and equitable remedies, regardless of whether a lawsuit is filed. This provision ensures that the franchisee is responsible for City Wide's legal costs associated with enforcing the non-compete agreement.
The franchisee is also required to indemnify City Wide and its employees and agents from any claims, demands, suits, losses, liabilities, actions, expenses, and damages, including reasonable attorneys' fees, resulting from a breach of the agreement by the franchisee. This means the franchisee must protect City Wide from any third-party claims arising from the franchisee's breach of the non-compete agreement. These remedies provide City Wide with strong legal recourse to protect its interests and enforce the non-compete agreement.