What remedy is available to Cordova Franchising, LLC for violations of the covenants?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
lly 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 claim
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, Cordova Franchising, LLC has specific remedies available for violations of certain covenants within the franchise agreement. If a franchisee fails to comply with the Article 4 Intellectual Property, Brand Protection, and Non-Competition Covenants and Restrictions, Cordova can seek injunctive relief. This means Cordova can ask a court to order the franchisee to stop the violating behavior. The document states that such violations would cause irreparable harm for which monetary compensation would not be adequate.
Cordova can pursue injunctive relief without having to post a bond, although the franchisee is entitled to due notice. If a bond is required, the amount is capped at $1,000. The franchisee's sole remedy if an injunction is issued is to seek dissolution of the injunction. The agreement explicitly waives the franchisee's right to claim damages resulting from a wrongfully issued injunction.
These remedies are not exclusive, meaning Cordova can combine them with other remedies available under the agreement, at law, or in equity. These include specific performance (forcing the franchisee to fulfill their contractual obligations) and recovery of monetary damages. This comprehensive approach allows Cordova Franchising, LLC to pursue the most effective course of action to address any breach of the specified covenants, protecting its brand and franchise system.