Does the Dollar Rent A Car agreement allow for an injunction to prevent violations?
Dollar_Rent_A_Car Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Recipient acknowledges that any violation of this Agreement by Recipient will cause irreparable harm for which no adequate remedy at law may be available. Accordingly, Recipient consents to the issuance of an injunction to prevent or to halt any such violation. Recipient also agrees the Franchisor and Franchisee may each avail themselves of any other rights and remedies which they may have under this Agreement or otherwise. Further, any claim that Recipient may have against Franchisor or Franchisee, whether or not arising from this Agreement, shall not constitute a defense to the enforcement of the confidentiality provisions in this Agreement.
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- Recipient acknowledges and agrees that Franchisor and Franchisee are intended third-party beneficiaries of this Agreement and that they each are independently entitled to enforce any provision of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 102–301)
What This Means (2025 FDD)
According to the 2025 Dollar Rent A Car Franchise Disclosure Document, the agreement allows for the issuance of an injunction to prevent violations. The agreement states that any violation will cause irreparable harm for which there may be no adequate remedy at law. Therefore, the recipient of the agreement consents to an injunction to prevent or halt any violation. This consent means that Dollar Rent A Car can seek immediate court intervention to stop a franchisee from breaching the agreement.
This clause is significant for prospective Dollar Rent A Car franchisees because it highlights the importance of adhering to the franchise agreement. Failure to comply with the agreement can lead to immediate legal action, potentially disrupting the franchisee's business operations. The franchisee also agrees that claims against Dollar Rent A Car do not constitute a defense against the enforcement of confidentiality provisions.
Furthermore, the agreement specifies that both the Franchisor and Franchisee are considered third-party beneficiaries, allowing each to independently enforce the agreement's provisions. This ensures that both parties have the legal means to protect their interests and uphold the terms of the franchise agreement. Additionally, a franchisee also consents to the issuance of an injunction prohibiting any conduct in violation of the terms of Section 12.18, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security.
In the event of non-compliance with Section 12.18, the franchisee is responsible for covering all court costs and reasonable attorney's fees incurred by Dollar Rent A Car in enforcing this section, including expenses for obtaining specific performance or an injunction against the violation. This provision underscores the serious consequences of breaching the non-compete terms and the financial burden a franchisee may face in such a scenario.