If a Kitchen Solvers franchisee breaches the agreement, is Kitchen Solvers entitled to seek an injunction?
Kitchen_Solvers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
C. Enforcement. During the term of this Agreement, if you do not give us written notice of the alleged breach of this Agreement within one (1) year from the date that you have knowledge of circumstances reasonably causing you to believe you may have a claim for a breach of this Agreement by us, then the alleged breach will be deemed to be waived by you in all respects and you will be barred from bringing any legal or other action against us for the alleged breach. Furthermore, upon expiration or termination of this Agreement, you may not assert any claim or cause of action against us arising under, out of, or in any way connected with or related to this Agreement, the relationship between the parties, or your Business unless the claim or cause of action is commenced within one year after the effective date of the expiration or termination of this Agreement.
Source: Item 23 — Receipts (FDD pages 49–190)
What This Means (2025 FDD)
According to Kitchen Solvers' 2025 Franchise Disclosure Document, Kitchen Solvers is entitled to seek an injunction if a franchisee breaches the franchise agreement. Specifically, if a franchisee breaches or threatens to breach any terms of the agreement, Kitchen Solvers can seek an injunction to restrain the breach. Kitchen Solvers can also pursue a decree of specific performance without needing to demonstrate actual damages. Furthermore, Kitchen Solvers can recover reasonable attorney's fees and other costs incurred while obtaining this equitable relief, which remains in effect until arbitrators make a final and binding determination. This clause is modified by an addendum for franchises sold in Minnesota.
For franchisees in Minnesota, a similar clause exists, stating that in the event of a breach or threatened breach of any terms of the agreement, the other party is entitled to seek an injunction restraining such breach and/or a decree of specific performance. This can be done without showing or proving any actual damage. The party seeking the injunction can also recover reasonable attorneys' fees and other costs incurred in obtaining said equitable relief, until a final and binding determination is made by the arbitrators.
Additionally, Kitchen Solvers retains the right to seek temporary and permanent injunctions and orders of specific performance to enforce specific provisions of the agreement. These provisions relate to the franchisee's use of trademarks, the construction and equipping of the franchised business, the franchisee's obligations upon termination or expiration of the agreement, and the transfer of the agreement or any ownership interest in it. Injunctions may also be necessary to prohibit any act or omission by the franchisee or its employees that violates any applicable law, ordinance, or regulation, or which is dishonest or misleading to Kitchen Solvers and/or Kitchen Solvers' other licensees.
These stipulations regarding injunctions and specific performance are common in franchise agreements to protect the franchisor's brand standards, intellectual property, and overall system integrity. Prospective franchisees should understand the circumstances under which Kitchen Solvers might seek such remedies and the potential financial implications of such actions.