Can Fitstop seek injunctive relief for violations of the in-term covenant not to compete?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You acknowledge and agree that irreparable harm could be caused to us by your violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, we shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) your unauthorized use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) your obligation upon termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can seek injunctive relief for violations of the in-term covenant not to compete. The FDD states that Fitstop is entitled to obtain restraining orders or temporary or permanent injunctions from a court of competent jurisdiction, without bond, to enforce provisions of the agreement. This includes the in-term covenant not to compete, as well as any other violations of the restrictive covenants in the agreement.
This means that if a Fitstop franchisee violates the in-term covenant not to compete, Fitstop can seek a court order to stop the franchisee from continuing the violating behavior. The franchisee acknowledges that a violation of any of the terms of the agreement would result in irreparable injury to Fitstop for which no adequate remedy at law may be available. Therefore, Fitstop may seek and obtain preliminary and permanent injunctive relief restraining the breach or threatened breach by the franchisee, and the franchisee consents to the issuance of an injunction prohibiting any conduct by the franchisee in violation of this section.
The franchisee's only remedy if such an injunction is entered is to seek dissolution of the injunction if they prevail in a proceeding. This highlights the importance of understanding and adhering to the restrictive covenants outlined in the franchise agreement, as violations can lead to immediate legal action and potential business disruption for the franchisee.
Fitstop also has the right to reduce the scope of any covenant without the franchisee's consent, effective immediately upon written notice. The franchisee must comply with the modified covenant, which will be fully enforceable. The existence of any claims the franchisee may have against Fitstop does not constitute a defense to the enforcement of the covenants. The franchisee is responsible for all costs and expenses, including reasonable attorney's fees, incurred by Fitstop in connection with the enforcement of this section of the agreement.