What is the Itan employee's agreement regarding the potential for substantial and irreparable damage resulting from a breach of Section 3?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
re reasonable we may, upon written notice to you, unilaterally modify the brand protection covenants in §3 of this Agreement by limiting the scope of the Prohibited Activities, narrowing the definition of a Competing Business, shortening the duration of the Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon you under §3 of this Agreement to ensure the covenants are enforceable under applicable Law.
- (e) Breach. You agree that: (i) any failure to comply with §3 is likely to cause substantial and irreparable damage to us and/or other franchisees for which there is no adequate remedy at law; and (ii) we are entitled to injunctive relief if you breach §3 tog
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, employees acknowledge that failure to comply with Section 3 of their agreement is likely to cause substantial and irreparable damage to Itan and/or its other franchisees. This damage is understood to be of a nature for which there is no adequate remedy at law.
Because of the potential for substantial and irreparable damage, Itan is entitled to injunctive relief if an employee breaches Section 3, in addition to any other remedies available at equity or law. Itan will notify the employee if they intend to seek injunctive relief, and they are not required to post a bond. However, if a court requires a bond, the bond amount will not exceed $1,000.
The agreement specifies that no remedy available to Itan is exclusive of any other. Remedies may be combined under the agreement, at law, or in equity, including injunctive relief, specific performance, and recovery of monetary damages. Section 3 of the employee agreement outlines the brand protection covenants, including protection of confidential information and intellectual property, and unfair competition.