What remedy is Kidokinetics entitled to for a violation of the non-compete agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.**
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- Breach. You agree that failure to comply with the terms of 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 the terms 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 that you may have against us, our owners or our affiliates, or against Franchisee, regardless o
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee's failure to comply with the non-compete agreement will cause substantial and irreparable damage to Kidokinetics and its other franchisees. Kidokinetics is entitled to injunctive relief for any violation of the agreement. This means Kidokinetics can seek a court order to stop the franchisee from continuing the prohibited activity. Kidokinetics can apply for injunctive relief without posting a bond, but with due notice. If a court requires a bond, the parties agree that the bond amount will not exceed $1,000. The franchisee's sole remedy, if an injunction is entered, is to seek dissolution of the injunction if warranted.
Kidokinetics's remedies are cumulative and can be combined with others available under the agreement, at law, or in equity. These remedies include injunctive relief, specific performance, and recovery of monetary damages. This means Kidokinetics isn't limited to just one form of compensation if a franchisee breaches the agreement; they can pursue multiple avenues to recoup losses and ensure compliance.
Furthermore, any claims, defenses, or causes of action the franchisee may have against Kidokinetics or other franchisees cannot be used as a defense against Kidokinetics's enforcement of the agreement. This provision aims to prevent franchisees from using counterclaims to avoid compliance with the non-compete obligations. The franchisee also acknowledges the reasonableness of the non-compete terms and waives any right to challenge them as overly broad or unenforceable.