Does the lump sum payment affect Devon Creek's right to obtain injunctive relief?

According to Devon Creek's 2024 Franchise Disclosure Document, the requirement for a franchisee to pay a lump sum payment under certain default termination circumstances does not affect Devon Creek's right to seek injunctive relief. This means that even if a franchisee is obligated to pay liquidated damages to Devon Creek, Devon Creek still retains the right to pursue a court order to stop the franchisee from engaging in activities that could harm the Devon Creek brand or system. Injunctive relief is a legal remedy where a court orders a party to stop doing something.

This provision protects Devon Creek's interests by ensuring that it can take immediate legal action to prevent further damage, even while pursuing monetary compensation. For example, if a franchisee violates non-compete agreements or misuses confidential information, Devon Creek can seek an injunction to halt these activities immediately, regardless of whether the lump sum payment has been made or is still being pursued. This is a common practice in franchising, as franchisors need to protect their brand and system from damage caused by franchisees who breach their agreements.

For a prospective Devon Creek franchisee, this means that even if they are in a situation where they owe a lump sum payment to Devon Creek due to a default, Devon Creek can still pursue injunctive relief if the franchisee's actions warrant it. This underscores the importance of adhering to the franchise agreement and avoiding actions that could lead to legal action by Devon Creek. The franchisee should be aware that the lump sum payment is in addition to, and does not limit, Devon Creek's other legal rights and remedies.