Is Counselor Realty entitled to an injunction for a breach of the franchise agreement?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 Injunctive Relief. Your breach of this Agreement could cause irreparable damage to Counselor or to other franchisees. Therefore, upon a breach or threatened breach of any of the terms of this Agreement, we are entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication, without bond, or having to show or prove any actual damage, and without regard to the availability of an adequate remedy at law.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to the 2025 Counselor Realty Franchise Disclosure Document, Counselor Realty is entitled to seek injunctive relief in the event of a breach or threatened breach of the franchise agreement by the franchisee. This means that Counselor Realty can ask a court to order the franchisee to stop the behavior that constitutes the breach.
The FDD specifies that such injunctive relief can be sought immediately, pending arbitration or adjudication, without the need for Counselor Realty to post a bond or demonstrate actual damages. This is a significant advantage for Counselor Realty, as it streamlines the process of preventing further harm resulting from a franchisee's violation of the agreement. The right to seek specific performance is also included, which means Counselor Realty can compel the franchisee to fulfill their obligations under the agreement.
This clause is typical in franchise agreements, as it aims to protect the brand's integrity, customer relationships, and overall system standards. The ability to obtain an injunction quickly can be crucial in preventing irreparable harm to Counselor Realty's reputation and business interests. Franchisees should be aware of this provision and understand the potential consequences of breaching the franchise agreement.