Can Face Foundrie seek an injunction against an employee who violates the employment agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand, acknowledge, and agree that if you do not comply with the requirements of this Agreement, you will cause irreparable injury to Franchisor, and that:
- a.
We or Franchisor will have the right to enforce this Agreement and any of its provisions by going to a court and obtaining an injunction, specific performance, or other equitable relief, without prejudice to any other rights and remedies that we or Franchisor may have for breach of this Agreement;
- b.
You will not raise wrongful termination or other defenses to the enforcement of this Agreement (although you will have the right to raise those issues in a separate legal action); and
- c.
You must reimburse us or Franchisor for any court costs and reasonable attorney's fees that we or Franchisor incur as a result of your violation of this Agreement and having to go to court to seek enforcement.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, Face Foundrie has the right to seek injunctive relief against an employee who violates the terms of their employment agreement. Specifically, Face Foundrie can pursue an injunction in court to enforce the agreement if an employee's actions cause irreparable harm to the company. This is in addition to any other legal remedies Face Foundrie may have. The employee also agrees to cover Face Foundrie's court costs and attorney's fees if they violate the agreement and Face Foundrie has to go to court to enforce it.
This clause is significant for prospective Face Foundrie franchisees because it outlines the legal protections available to the franchisor in the event of employee misconduct. It also highlights the importance of franchisees ensuring their employees comply with the terms of their employment agreements, as violations could lead to legal action and financial penalties. The agreement specifies that the employee cannot raise wrongful termination or other defenses to the enforcement of the agreement, although the employee has the right to raise those issues in a separate legal action.
However, in Washington state, noncompetition covenants are void and unenforceable against an employee if the employee's earnings from the party seeking enforcement, when annualized, do not exceed $100,000 per year (this amount is adjusted annually for inflation). Therefore, Face Foundrie's ability to enforce non-compete agreements through injunctive relief may be limited by these state laws, depending on the employee's earnings.
In Minnesota, Section 18.01 of the Franchise Agreement is deleted and replaced with a clause that states nothing in the agreement bars Face Foundrie's right to obtain specific performance of the provisions of this Agreement and seek injunctive relief against conduct that threatens to injure or harm Face Foundrie, the Marks, or the System, under customary equity rules, including applicable rules for obtaining restraining orders and preliminary injunctions. The franchisee agrees that Face Foundrie may seek such injunctive relief and that its only remedy if an injunction is entered against the franchisee will be the dissolution of that injunction, if warranted, upon due hearing, and the franchisee waives any claim for damages caused by such injunction. A court will determine if a bond is required.