In the event of a breach of the non-compete agreement, is Clear Pest Pros entitled to an injunction?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
It is the parties' intent that the provisions of this Article III be judicially enforced to the fullest extent permissible under applicable law. Accordingly, the parties agree that any reduction in scope or modification of any part of the noncompetition provisions contained herein will not render any other part unenforceable. In the event of the actual or threatened breach of this Article III by you, any of your principals, or any members of their immediate family, Franchisor will be entitled to an injunction restraining such person from any such actual or threatened breach. You agree that in the event of the actual or threatened breach of this Article III, Franchisor's harm will be irreparable and that Franchisor has no adequate remedy at law to prevent such harm. You acknowledge and agree that each of you has previously worked or been gainfully employed in other careers and that the provisions of this Article III in no way prevent you from earning a living. You further acknowledge and agree that the time limitation of this Article III will be tolled during any default under this Personal Guaranty.
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, Clear Pest Pros is entitled to seek an injunction in the event of an actual or threatened breach of the non-compete agreement. The agreement applies to the franchisee, their principals, and their immediate family members.
The FDD states that Clear Pest Pros's harm from a breach of the non-compete agreement would be irreparable, and that monetary damages would not be an adequate remedy. This is a common provision in franchise agreements, as the franchisor's brand reputation and market share are difficult to quantify in monetary terms.
The franchisee acknowledges that they have worked in other careers and that the non-compete agreement does not prevent them from earning a living. The franchisee also agrees that the time limitation of the non-compete agreement will be extended during any default under the Personal Guaranty.