In the event of a breach of Section 3, is Itan entitled to injunctive relief?
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, Itan is entitled to injunctive relief if a franchisee breaches Section 3 of the agreement. The FDD states that any breach of Section 3 is likely to cause substantial and irreparable damage to Itan and/or other franchisees, for which there is no adequate remedy at law.
Injunctive relief means that Itan can seek a court order to stop the franchisee from continuing the actions that constitute the breach. This is in addition to any other legal or equitable remedies available to Itan, such as monetary damages or specific performance.
Itan will notify the franchisee 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. This clause highlights the seriousness with which Itan views potential breaches of Section 3, which likely covers critical aspects of the franchise agreement such as confidentiality, non-compete clauses, and brand protection.