Can Deck Medic seek injunctive relief to prevent a franchisee from operating the Franchised Business after termination?
Deck_Medic Franchise · 2024 FDDAnswer from 2024 FDD Document
- (5) To enjoin, restrain, and otherwise prohibit Franchisee from operating the Franchised Business
or exercising any rights
Franchisee agrees that Franchisee's failure to timely make modifications and alterations to Franchisee's Administrative Office will cause irreparable injury to Franchisor, and Franchisee consents to the entry, at Franchisee's expense, of any ex-parte order by any court of competent jurisdiction authorizing Franchisor or its agents to take action, if Franchisor seeks such an order;
Source: Item 23 — RECEIPTS (FDD pages 43–228)
What This Means (2024 FDD)
According to Deck Medic's 2024 Franchise Disclosure Document, Deck Medic has the right to seek injunctive relief to prevent a franchisee from operating the franchised business after termination. Specifically, Deck Medic can pursue legal action to enjoin, restrain, and otherwise prohibit a franchisee from operating the Deck Medic business or exercising any rights associated with it.
This provision means that if a franchisee violates the franchise agreement, Deck Medic can seek a court order to immediately stop the franchisee from continuing to operate the business. This is a significant protection for Deck Medic, as it prevents a terminated franchisee from continuing to use Deck Medic's system, brand, and confidential information to compete with the franchisor or other franchisees.
Additionally, if a franchisee fails to make required modifications and alterations to their administrative office to de-identify it from a Deck Medic business after termination, Deck Medic can seek an ex-parte order from a court to authorize Deck Medic or its agents to make those alterations at the franchisee's expense. This ensures that the franchisee complies with the post-termination obligations and prevents confusion among the public regarding the continued existence of a Deck Medic business at that location.