What specific actions can Face Foundrie take to enforce the non-compete provisions of the agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
s operation and performance under this Agreement including, but not limited to, if applicable, state employment tax, state sales tax (including any sales or use tax on equipment purchased or leased) and all other taxes and expenses of operating the Facial Bar. In no event shall Franchisee permit a tax sale or seizure by levy or execution or similar writ or warrant to occur against the Facial Bar, the Premises or any tangible personal property used in connection with the operation of the Facial Bar.
18. DISPUTE RESOLUTION.
18.01 Injunctive Relief and Attorneys' Fees. Franchisor and Franchisee will each be entitled to seek the entry of temporary restraining orders and temporary and permanent injunctions to: (i) enforce Franchisee and Franchisor's ability to terminate this Agreement for the causes set forth in Section 16 of this Agreement; and (ii) prevent or remedy a breach of this Agreement if that breach could materially impair the goodwill associated with Franchisee or Franchisor's business, including but not limited to, the enforcement of obligations upon termination of this Agreement and the enforcement of the non-compete provisions of this Agreement. Franchisor and Franchisee will also be entitled to the entry of temporary restraining orders and temporary and permanent injunctions enforcing these provisions. If Franchisor is successful in obtaining an injunction, or any other judicial relief or order from an arbitrator against Franchisee, or in successfully defending any claim Franchisee has brought against Franchisor, Franchisee will pay Franchisor an amount equal to all of Franchisor's costs of prosecuting and defending the action, including reasonable attorneys' fees, costs of investigation, court and arbitration costs, and other litigation or arbitration expenses.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, both Face Foundrie and the franchisee have the right to seek temporary restraining orders and temporary and permanent injunctions to enforce the non-compete provisions within the agreement. This means Face Foundrie can go to court to prevent a franchisee from breaching the non-compete agreement.
Specifically, Face Foundrie can take legal action to prevent or remedy a breach of the agreement if that breach could significantly harm the goodwill associated with the Face Foundrie business. This includes enforcing obligations after the termination of the agreement and ensuring compliance with the non-compete terms.
If Face Foundrie successfully obtains an injunction or any other judicial relief against a franchisee, the franchisee is responsible for covering all of Face Foundrie's costs associated with prosecuting and defending the action. These costs include reasonable attorneys' fees, investigation costs, court and arbitration costs, and other related expenses. This right to seek injunctive relief is in addition to any other rights Face Foundrie may have under the agreement, including the ability to obtain monetary damages from the franchisee for breaching the agreement.
However, the FDD also notes that covenants not to compete are generally considered unenforceable in North Dakota, but Face Foundrie will enforce them to the maximum extent the law allows. This indicates that the enforceability of the non-compete provisions may vary depending on the jurisdiction and applicable laws.