If I violate the covenants in the Deck Medic agreement, who can seek injunctive relief?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
definition of a Competitive Business, shortening the duration of the Post-Term Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon Franchisee under this Article 6 to ensure that the terms and covenants are enforceable under applicable law.
6.G. BREACH OF RESTRICTIVE COVENANTS AND OBLIGATIONS
Franchisee agrees that Franchisee's failure and/or Franchisee's Owner(s) failure to comply with the restrictive covenants and obligations set forth in this Article 6 will cause irreparable harm to Franchisor and/or other Deck Medic Business franchisees for which there is no adequate remedy at law. Franchisee agrees that any violation of these Article 6 covenants and obligations by either Franchisee and/or any Owner(s) will entitle Franchisor to injunctive relief. Franchisee agrees that Franchisor 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 Franchisee, 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 fi
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, both the franchisor and other Deck Medic franchisees can seek injunctive relief if a franchisee violates the restrictive covenants and obligations outlined in Article 6 of the franchise agreement. Specifically, the document states that failure to comply with these covenants will cause irreparable harm, justifying injunctive relief. The franchisor can apply for this relief without needing to post a bond, although they must provide due notice. If a court requires a bond, the amount is capped at $1,000.
This means that as a Deck Medic franchisee, you are agreeing that any breach of the restrictive covenants, such as those related to non-competition or protection of confidential information, could lead to legal action against you. This action could not only come from Deck Medic itself but also from fellow franchisees who believe they have been harmed by your actions. Injunctive relief is a court order that would compel you to stop the violating behavior immediately.
It's important to understand the scope of these restrictive covenants and obligations before signing the franchise agreement. These covenants are designed to protect the Deck Medic system and brand, and franchisees are expected to adhere to them strictly. The FDD highlights that these remedies are not exclusive and can be combined with other legal actions, such as seeking monetary damages. Therefore, a prospective franchisee should carefully review Article 6 and related sections of the agreement with legal counsel to fully understand the implications of these restrictions and the potential consequences of violating them.