What specific provisions of the Fitstop Franchise Agreement, if violated by the franchisee, allow Fitstop to seek restraining orders or temporary or permanent injunctions?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
her intellectual property rights associated with the same; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- ©2024 Fitstop USA, Inc. 19.3 Injunctive Relief. 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
involving the Proprietary Marks, as now or hereafter amended; (v) disputes and controversies involving enforcement of our rights with respect to confidentiality under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can seek restraining orders or temporary or permanent injunctions from a court of competent jurisdiction, without bond, if a franchisee violates certain provisions of the Franchise Agreement. These provisions relate to: unauthorized use of Fitstop's Proprietary Marks and Confidential Information, including any proprietary software used in connection with the Franchised Business; violations of the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in the Agreement; and the franchisee's obligations upon termination or expiration of the Agreement.
Additionally, Fitstop may seek injunctive relief in disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks, as now or hereafter amended; disputes and controversies involving enforcement of Fitstop's rights with respect to confidentiality under the Agreement; and to prohibit any act or omission by the franchisee or their representatives that constitutes a violation of applicable law, threatens the Franchise System, or threatens other System franchisees.
The Franchise Agreement specifies that if an injunction is entered against the franchisee, the franchisee's only remedy is to seek dissolution of the injunction if they prevail in a subsequent proceeding. This means that a franchisee facing an injunction must focus on proving that the injunction was wrongly issued, rather than seeking other forms of compensation or relief. This clause underscores the importance of franchisees fully understanding and complying with the specified provisions of the Franchise Agreement to avoid the risk of injunctive action by Fitstop.