Does the Kidokinetics agreement prevent the Franchisor from seeking injunctive relief in any jurisdiction?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
NGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
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- Breach. You agree that failure to comply with this Agreement will cause substantial and irreparable damage to us and/or other Kidokinetics franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of this Agreement will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the parties agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Agreement are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense, or cause of action you may have against us or against Franchisee, rega
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, the agreement does not prevent Kidokinetics from seeking injunctive relief. In fact, it explicitly states that Kidokinetics is entitled to injunctive relief for any violation of the agreement. The agreement also specifies that Kidokinetics can seek this relief without posting a bond, although if a court requires a bond, it will not exceed $1,000.
This means that if a franchisee violates the agreement, Kidokinetics can ask a court to order the franchisee to stop the violating behavior immediately. This is a significant protection for Kidokinetics, as it allows them to quickly address breaches of contract that could harm the brand or other franchisees. The franchisee's sole remedy in the event of such an injunction is to seek its dissolution if warranted.
Furthermore, the agreement emphasizes that the franchisee acknowledges that failure to comply with the agreement will cause substantial and irreparable damage to Kidokinetics and its franchisees, for which monetary compensation would not be adequate. This acknowledgement strengthens Kidokinetics's position when seeking injunctive relief, as it demonstrates that the franchisee understood the potential consequences of violating the agreement. The franchisee also waives any right to challenge the terms of the agreement as being overly broad, unreasonable, or otherwise unenforceable.
This clause is typical in franchise agreements, as franchisors need to protect their brand standards, trade secrets, and customer relationships. Injunctive relief is a powerful tool for enforcing these protections, and the Kidokinetics agreement makes it clear that the franchisor intends to use it when necessary.