What remedy is Crawlspace Medic entitled to in the event of a breach or threatened breach by the Covenantor?
Crawlspace_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- b. Covenantor agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, Franchisee is obligated to enforce the provisions of this Agreement and shall be entitled, in addition to any other remedies that are made available to it at law or in equity, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security.
c. Covenantor agrees to pay all expenses (including court costs and reasonable attorneys' fees) incurred by Franchisor and Franchisee in enforcing this Agreement.
d. Any failure Franchisee to object to or take action with respect to any breach of any provision of this Agreement by Covenantor shall not operate or be construed as a waiver of or consent to that breach or any subsequent breach by Covenantor.
e. THIS AGREEMENT SHALL BE INTERPRETED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF SOUTH CAROLINA, WITHOUT REFERENCE TO SOUTH CAROLINA CHOICE OF LAW PRINCIPLES.
COVENANTOR HEREBY IRREVOCABLY SUBMITS HIMSELF OR HERSELF TO THE JURISDICTION OF THE STATE AND FEDERAL COURTS OF THE STATE OF SOUTH CAROLINA.
COVENANTOR HEREBY WAIVES ALL QUESTIONS OF PERSONAL JURISDICTION OR VENUE FOR THE PURPOSE OF CARRYING OUT THIS PROVISION.
COVENANTOR HEREBY AGREES THAT SERVICE OF PROCESS MAY BE MADE UPON COVENANTOR IN ANY PROCEEDING RELATING TO OR ARISING UNDER THIS AGREEMENT OR THE RELATIONSHIP CREATED BY THIS AGREEMENT BY ANY MEANS ALLOWED BY SOUTH CAROLINA OR FEDERAL LAW.
COVENANTOR FURTHER AGREES THAT VENUE FOR ANY PROCEEDING RELATING TO OR ARISING OUT OF THIS AGREEMENT SHALL BE IN SOUTH CAROLINA; PROVIDED, HOWEVER, WITH RESPECT TO ANY ACTION THAT INCLUDES INJUNCTIVE RELIEF OR OTHER EXTRAORDINARY RELIEF, FRANCHISOR OR FRANCHISEE MAY BRING SUCH ACTION IN ANY COURT IN ANY STATE THAT HAS JURISDICTION.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2024 FDD)
According to the 2024 Crawlspace Medic Franchise Disclosure Document, in the event of a breach, threatened breach, or attempted breach of the agreement by the Covenantor, Crawlspace Medic would be irreparably injured and lack an adequate remedy at law. In such cases, the franchisee is obligated to enforce the agreement's provisions. Crawlspace Medic is entitled to a temporary and/or permanent injunction and a decree for specific performance of the agreement's terms. This is available without needing to show actual or threatened harm and without the requirement to furnish a bond or other security.
Additionally, the Covenantor is responsible for covering all expenses, including court costs and reasonable attorneys' fees, incurred by Crawlspace Medic and the franchisee in enforcing the agreement. The agreement also specifies that any failure by the franchisee to object to or take action regarding any breach does not constitute a waiver of or consent to that breach or any subsequent breach by the Covenantor.
The agreement is to be interpreted, construed, and enforced in accordance with the laws of South Carolina, without regard to its choice of law principles. The Covenantor irrevocably submits to the jurisdiction of South Carolina's state and federal courts and waives any objections to personal jurisdiction or venue. Service of process may be made upon the Covenantor through any means allowed by South Carolina or federal law, and venue for any proceeding related to the agreement will be in South Carolina. However, Crawlspace Medic or the franchisee may bring actions for injunctive or other extraordinary relief in any court with jurisdiction.
These measures are designed to protect Crawlspace Medic's interests and ensure compliance with the agreement, providing the franchisor with strong legal recourse in case of any breach or threatened breach by the Covenantor. This is fairly typical in franchising, as franchisors need to protect their brand standards and trade secrets.