In the event of a non-competition covenant violation, can Kitchen Solvers seek injunctive relief?
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 Kitchen Solvers' 2025 Franchise Disclosure Document, in the event of a breach or threatened breach of the franchise agreement, Kitchen Solvers is entitled to seek an injunction. This right is specifically outlined in an addendum to the franchise agreement for franchisees in Minnesota. This addendum states that if a franchisee violates or threatens to violate any terms of the agreement, Kitchen Solvers can pursue an injunction to stop the breach.
This means that Kitchen Solvers can take legal action to prevent a franchisee from acting in a way that violates the franchise agreement. Injunctive relief is a court order that requires a party to stop doing something. In the context of a franchise agreement, this could mean stopping a franchisee from operating a competing business or using Kitchen Solvers' confidential information improperly.
Furthermore, Kitchen Solvers can seek specific performance, which compels the breaching party to fulfill their obligations under the agreement. The addendum also allows Kitchen Solvers to recover reasonable attorneys' fees and other costs incurred while obtaining the equitable relief, and this protection remains in effect until the arbitrators make a final and binding determination.
It is important to note that this specific clause is part of an addendum applicable to franchises sold in Minnesota. Franchisees in other states should review their specific franchise agreements and any state-specific addenda to understand their rights and obligations regarding injunctive relief and non-competition covenants.