factual

Does the Kitchen Solvers agreement allow for injunctive relief in case of a breach of the non-compete agreement?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

Therefore, it is mutually agreed that in the event of a breach or threatened breach of any of the terms of this Agreement the other party will forthwith be entitled to seek an injunction restraining such breach and/or to a decree of specific performance, without showing or proving any actual damage, together with recovery of reasonable attorneys' fees and other costs incurred in obtaining said equitable relief, until such time as a final and binding determination is made by the arbitrators.

Source: Item 23 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, the franchise agreement allows Kitchen Solvers to seek injunctive relief in the event of a breach or threatened breach of the agreement's terms. Specifically, in Minnesota, Kitchen Solvers is entitled to seek an injunction restraining such breach and/or a decree of specific performance, without needing to demonstrate actual damages. This right extends until arbitrators make a final determination.

This provision means that Kitchen Solvers can take immediate legal action to prevent a franchisee from violating the non-compete terms, without initially proving financial harm. The franchisee may also be responsible for Kitchen Solvers' legal fees and other costs incurred while seeking this equitable relief. This clause is particularly relevant for franchisees in Minnesota, as it is explicitly mentioned in the addendum for that state.

It's important to note that the enforceability of non-compete agreements can vary by state. For example, the North Dakota addendum indicates that covenants not to compete upon termination or expiration of franchise agreements are generally not enforceable in North Dakota, except in certain instances as provided by law. Therefore, franchisees should be aware of the specific regulations in their state regarding non-compete agreements and their enforceability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.