Who can apply for injunctive relief in the event of a breach of the Cordova agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
me unilaterally modify the terms of this Article 4 (Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions) by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon you under this Article 4 to ensure that the terms are enforceable under applicable law.
(g) Breach. You agree that failure to comply with these Article 4 Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions will cause irreparable harm to us and/or other Cordova Business franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the parties agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
5. Transfer Restrictions and Non-Competition Covenants and Restrictions.
Notwithstanding anything contained in this Agreement to the contrary, you agree that if you are an Owner, and/or the Spouse of an Owner, that, prior to Transferring an Owner's equity and/or ownership interests in Franchisee that, among other things, Franchisee must notify us and obtain our written consent. Likewise, you agree that under the Franchise Agreement that prior to Franchisee's Transfer of the Franchise Agreement, among other things, Franchisee must notify us and obtain our written consent.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova can apply for injunctive relief in the event that a franchisee violates the Article 4 Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions. Injunctive relief is a court order that requires a party to do or cease doing a specific action. Cordova can seek this relief, without posting a bond, upon providing due notice to the franchisee. The franchisee's sole remedy if an injunction is entered against them is to seek the dissolution of the injunction, if warranted, after a hearing. The franchisee waives all claims for damages resulting from the wrongful issuance of the injunction. If a court requires a bond, the parties agree that the bond amount will not exceed $1,000.
Additionally, Cordova retains the right to obtain specific performance of the provisions outlined in the agreement and injunctive relief under legal and/or equity rules against threatened conduct that will cause damages or loss to it, the Licensed Marks or the System. The franchisee agrees that Cordova will not be required to post a bond (other than as set forth in Article 6.G. of this Agreement) to obtain injunctive relief and that franchisee's only remedy if an injunction is entered against franchisee will be the dissolution of that injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby).
This means that Cordova can seek a court order to stop a franchisee from actions that violate the franchise agreement, particularly those related to intellectual property, brand protection, and competition. The franchisee has limited recourse in the event of such an injunction, primarily being able to argue for its dissolution. This clause emphasizes the importance of adhering to the terms of the franchise agreement to avoid potential legal action and restrictions on business operations.