Under what conditions can Kidokinetics seek injunctive relief?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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 o
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics can seek injunctive relief if a franchisee violates the terms of the Franchise Agreement. The document states that any failure to comply with the agreement will cause substantial and irreparable damage to Kidokinetics and its other franchisees, for which there is no adequate remedy at law. Therefore, any violation entitles Kidokinetics to seek injunctive relief.
Kidokinetics can apply for injunctive relief without a bond, but with due notice to the franchisee. If a court requires a bond, the parties agree that the bond amount will not exceed $1,000. Injunctive relief is not the exclusive remedy available to Kidokinetics; it can be combined with other remedies available under the agreement, at law, or in equity, including specific performance and monetary damages.
This clause in the Franchise Agreement means that Kidokinetics can quickly seek a court order to stop a franchisee from continuing actions that violate the agreement, such as misusing intellectual property or operating outside the designated territory. The franchisee waives the right to claim damages if an injunction is issued, with their sole remedy being the potential dissolution of the injunction if warranted after a hearing. This provision is designed to protect Kidokinetics's brand and system standards, and to ensure compliance with the Franchise Agreement.