Does the Kitchen Solvers franchise agreement allow for civil action in addition to mediation/arbitration under certain circumstances?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding Subparagraph 13.A.1 and 13.A.2 above, you recognize that your Business is one of a number of businesses identified by the Trademarks and similarly situated and selling to the public similar products and services, and hence the failure on the part of a single franchisee to comply with the terms of its agreement could cause irreparable damage to us and/or to some or all of our other franchisees. 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 be entitled to 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 arbitrator. The foregoing equitable remedies are in addition to, and
not in lieu of, all other remedies or rights that the parties might otherwise have by virtue of any breach of this Agreement by the other party.
Source: Item 22 — Contracts (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Kitchen Solvers Franchise Disclosure Document, the franchise agreement does allow for civil action under specific circumstances, in addition to mediation or arbitration. The document states that in the event of a breach or threatened breach of the agreement, either party is entitled to seek an injunction or a decree of specific performance. This can be done without needing to demonstrate actual damages. The party seeking the injunction may also recover reasonable attorney's fees and other costs incurred while obtaining the equitable relief.
This right to seek injunctive relief exists until a final and binding determination is made by the arbitrator. These equitable remedies are in addition to any other remedies or rights that the parties might have due to a breach of the agreement. This means that Kitchen Solvers or the franchisee can pursue civil action in the form of an injunction to stop a breach from continuing while also pursuing other legal avenues to address the breach.
For a prospective Kitchen Solvers franchisee, this clause offers a degree of protection. It allows for swift action to prevent irreparable harm to their business or the Kitchen Solvers brand. However, it also means that Kitchen Solvers can quickly seek an injunction against a franchisee if they believe the franchisee is violating the agreement, potentially leading to legal expenses and business disruption. Franchise agreements commonly include clauses that allow for injunctive relief, particularly in cases involving intellectual property or breaches of confidentiality, as these can cause immediate and significant harm.