Can Hyper Kidz elect to enforce the franchise agreement by judicial process and injunction?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree that we will not be required to post a bond to obtain any injunctive relief and that your only remedy if an injunction is entered against you will be the dissolution of that injunction if warranted upon due hearing. All claims for damages by reason of the wrongful issuance of such injunction are hereby expressly waived. If we secure any such injunction or order of specific performance, you agree to pay to us an amount equal to the aggregate of our costs of obtaining such relief including, without limitation, reasonable legal fees, costs and expenses as provided in this Section and any damages incurred by us as a result of the breach of any such provision.
19.8 If we are required to enforce this Agreement in a judicial or other proceeding, you shall reimburse us for our costs and expenses, including, without limitation, reasonable accountants', attorneys', attorney assistants', and expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, whether incurred prior to, in preparation for or in contemplation of the filing of any such proceeding. If we are required to engage legal counsel in connection with any failure by you to comply with this Agreement, you shall reimburse us for any of the above-listed costs and expenses incurred by us.
Source: Item 23 — RECEIPTS (FDD pages 52–205)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Hyper Kidz can enforce the franchise agreement through judicial proceedings and seek injunctive relief. The agreement stipulates that Hyper Kidz is not required to post a bond to obtain any injunctive relief. If an injunction is issued against the franchisee, the franchisee's sole recourse is to request the dissolution of the injunction after a due hearing. The franchisee also waives any claims for damages resulting from the wrongful issuance of such an injunction.
Furthermore, if Hyper Kidz obtains an injunction or order of specific performance, the franchisee is responsible for covering all costs incurred by Hyper Kidz in securing such relief. These costs include reasonable legal fees, costs, expenses, and any damages resulting from the franchisee's breach of the agreement. This provision ensures that Hyper Kidz can take swift action to protect its interests without incurring additional financial burdens.
Additionally, should Hyper Kidz be required to enforce the agreement through judicial or other proceedings, the franchisee must reimburse Hyper Kidz for all associated costs and expenses. These expenses include reasonable fees for accountants, attorneys, attorney assistants, and expert witnesses, as well as costs of investigation, proof of facts, court costs, other litigation expenses, and travel and living expenses. This reimbursement applies whether these costs are incurred before, during, or in anticipation of filing any such proceeding. If Hyper Kidz needs to engage legal counsel due to the franchisee's failure to comply with the agreement, the franchisee is liable for all the listed costs and expenses incurred by Hyper Kidz.