What specific breaches of the Face Foundrie Area Developer Agreement can lead to injunctive relief?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 Injunctive Relief and Attorneys' Fees. Franchisor and Area Developer will each be entitled to the entry of temporary restraining orders and temporary and permanent injunctions to: (i) enforce Area Developer 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 Area Developer 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 Area Developer 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 Area Developer, or in successfully defending any claim Area Developer has brought against Franchisor, Area Developer 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.
Franchisor and Area Developer's respective rights to obtain injunctive or other equitable relief is in addition to any other right Franchisor or Area Developer may have under this Agreement. It will in no way limit or prohibit Franchisor from obtaining money damages from Area Developer if Area Developer breaches this Agreement.
- 16.3 Mediation.
Except where it is necessary for either Franchisor or Area Developer to obtain equitable relief to preserve the goodwill of their respective businesses (including, but not limited to, the enforcement of obligations upon termination of this Agreement and the covenants not to compete contained in this Agreement), Franchisor and Area Developer each agree to enter into mediation of all disputes involving this Agreement or any other aspect of the relationship between them, for a minimum of four (4) hours, before initiating any legal action or arbitration against the other.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to the 2025 Face Foundrie Franchise Disclosure Document, both Face Foundrie and the Area Developer have the right to seek temporary restraining orders and temporary and permanent injunctions under certain conditions. Specifically, either party can pursue such legal remedies to enforce the ability to terminate the Area Developer Agreement based on causes detailed in Section 16 of the agreement. Additionally, injunctive relief is available to prevent or address breaches of the agreement that could significantly damage the goodwill associated with either Face Foundrie's or the Area Developer's business. This includes enforcing obligations after the agreement terminates and upholding the non-compete provisions outlined in the agreement.
If Face Foundrie successfully obtains an injunction or any other judicial relief against the Area Developer, or if Face Foundrie successfully defends against any claim brought by the Area Developer, the Area Developer is responsible for covering all of Face Foundrie's costs associated with prosecuting or defending the action. These costs include reasonable attorneys' fees, investigation costs, court and arbitration costs, and other related litigation or arbitration expenses.
Furthermore, Face Foundrie and the Area Developer's rights to seek injunctive or other equitable relief are in addition to any other rights they may have under the Area Developer Agreement. This does not limit or prevent Face Foundrie from seeking monetary damages from the Area Developer if the Area Developer breaches the agreement. However, both parties agree to enter into mediation for a minimum of four hours before initiating any legal action or arbitration against the other, except where equitable relief is necessary to preserve the goodwill of their respective businesses, including the enforcement of termination obligations and non-compete covenants.