Does the Kitchen Solvers agreement state that damages alone are sufficient compensation for a violation of the non-competition covenants?
Kitchen_Solvers Franchise · 2025 FDDAnswer 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 the 2025 Kitchen Solvers Franchise Disclosure Document, the standard agreement does not explicitly state that damages alone are sufficient compensation for violating non-competition covenants. However, an addendum for Minnesota franchisees modifies the agreement to address breaches of its terms.
Specifically, for franchisees in Minnesota, in the event of a breach or threatened breach of the agreement, Kitchen Solvers is entitled to seek an injunction restraining such breach and/or a decree of specific performance. This equitable relief can be pursued without demonstrating any actual damage. Additionally, Kitchen Solvers can recover reasonable attorneys' fees and other costs incurred while obtaining this equitable relief, until a final determination is made by arbitrators.
This modification for Minnesota franchisees means that Kitchen Solvers can pursue legal remedies beyond just monetary damages if a franchisee violates the non-compete agreement. They can seek court orders to stop the franchisee from continuing the prohibited activity and recover legal costs, which provides Kitchen Solvers with stronger enforcement options. Prospective franchisees outside of Minnesota should review their specific franchise agreement and any state-specific addenda to understand the remedies available to Kitchen Solvers for breaches of the non-compete agreement.