If I violate the Kitchen Solvers non-compete agreement, can Kitchen Solvers seek remedies beyond damages?
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 restraining such breach and/or a decree of specific performance. This remedy is available without Kitchen Solvers needing to show or prove any actual damage. Additionally, Kitchen Solvers can recover reasonable attorneys' fees and other costs incurred in obtaining said equitable relief. This protection extends until the arbitrators make a final and binding determination.
This means that if a franchisee violates the non-compete agreement, Kitchen Solvers can take legal action to stop the franchisee from continuing the violating behavior. This can include obtaining a court order (injunction) to prevent further competitive activity or a decree of specific performance, which compels the franchisee to fulfill their obligations under the agreement.
The ability to seek injunctive relief and specific performance without proving actual damages is a significant advantage for Kitchen Solvers. It allows them to quickly address potential harm to their business and brand reputation caused by a franchisee's breach of the non-compete agreement. The recovery of attorney's fees and costs further strengthens Kitchen Solvers' position in enforcing the agreement.
However, it's important to note that this clause is modified by an addendum for franchises sold in Minnesota. The addendum specifies that in the event of a breach or threatened breach of the agreement, the other party (which could be Kitchen Solvers or the franchisee) is entitled to seek an injunction restraining such breach and/or a decree of specific performance, along with recovery of reasonable attorneys' fees and other costs. This addendum ensures that the franchisee also has the right to seek equitable relief in case of a breach by Kitchen Solvers.