Under what circumstances can Costa Vida Fresh Mexican Grill seek injunctive relief?
Costa_Vida_Fresh_Mexican_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You and each of your Owners expressly acknowledge the possession of skills and abilities of a general nature and the opportunity to exploit these skills in other ways, so that enforcement of the covenants contained in Paragraphs 5 and 6 above will not deprive any of you of your personal goodwill or ability to earn a living. If any covenant herein which restricts competitive activity is deemed unenforceable by virtue of its scope or in terms of geographic area, type of business activity prohibited and/or length of time, but could be rendered enforceable by reducing any part or all of it, you and we agree that it will be enforceable to the fullest extent permissible under applicable law and public policy. In addition to relief as may be available at equity or law, Costa Vida may obtain in any court of competent jurisdiction any injunctive relief, including temporary restraining orders and preliminary injunctions, against conduct or threatened conduct for which no adequate remedy at law may be available or which may cause it irreparable harm. You and each of your Owners acknowledge that any violation of Paragraphs 4, 5, or 6 hereof would result in irreparable injury for which no adequate remedy at law may be available. If Costa Vida files a claim to enforce this Agreement and prevails in such proceeding, you must reimburse Costa Vida for all its costs and expenses, including reasonable attorneys' fees.
Source: Item 23 — RECEIPTS (FDD pages 67–282)
What This Means (2025 FDD)
According to Costa Vida Fresh Mexican Grill's 2025 Franchise Disclosure Document, Costa Vida Fresh Mexican Grill may seek injunctive relief in any court of competent jurisdiction against conduct or threatened conduct for which no adequate remedy at law may be available or which may cause it irreparable harm.
Specifically, the franchise agreement states that any violation of Paragraphs 4, 5, or 6 of the agreement would result in irreparable injury for which no adequate remedy at law may be available. These paragraphs likely cover critical aspects of the franchise operation, such as protecting trade secrets, maintaining brand standards, or preventing unauthorized competition.
This clause is significant because it allows Costa Vida Fresh Mexican Grill to quickly seek court orders to stop a franchisee from engaging in activities that could harm the brand or system, rather than waiting for a full trial and monetary damages to be assessed. This is a common provision in franchise agreements, as it protects the franchisor's brand and system standards, which are essential to the success of the franchise network. If Costa Vida Fresh Mexican Grill prevails in a claim to enforce the agreement, the franchisee must reimburse Costa Vida Fresh Mexican Grill for all its costs and expenses, including reasonable attorneys' fees.