What happens if a Dryer Vent Squad franchisee does not comply with the non-compete agreement?
Dryer_Vent_Squad Franchise · 2024 FDDAnswer from 2024 FDD Document
eve that the covenants in this Agreement are reasonable in terms of scope, duration and geographic are, we may at any time unilaterally modify the terms of this Article 4 (Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions) by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon you under this Article 4 to ensure that the terms are enforceable under applicable law.
(g) Breach. You agree that failure to comply with these Article 4 Intellectual Property, Brand Protection and Non-Competition Covenants and Restrictions will cause irreparable harm to us and/or other Dryer Vent Squad Business franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us to injunctive relief. You agree that we 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 eq
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 40)
What This Means (2024 FDD)
According to Dryer Vent Squad's 2024 Franchise Disclosure Document, failure to comply with the non-competition covenants will cause irreparable harm to Dryer Vent Squad and its franchisees, for which there is no adequate remedy at law. Dryer Vent Squad is entitled to injunctive relief in the event of a violation of these covenants.
The franchisor can apply for injunctive relief without posting a bond, but with due notice to the franchisee. The franchisee's sole remedy, if an injunction is issued, is to seek the dissolution of the injunction. The franchisee waives all claims for damages resulting from a wrongful injunction. If a court requires a bond, the parties agree that the bond amount will not exceed $1,000.
The remedies available to Dryer Vent Squad are not exclusive and can be combined with other remedies under the agreement, at law, or in equity. These include injunctive relief, specific performance, and recovery of monetary damages.