What other remedies besides injunctive relief are available to Kitchen Solvers for a breach 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 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 a decree of specific performance. This means a court order could compel the franchisee to fulfill the terms of the agreement. Additionally, Kitchen Solvers can recover reasonable attorneys' fees and other costs incurred while obtaining equitable relief. This applies until the arbitrators make a final and binding determination.
This provision is particularly important for prospective franchisees as it outlines the financial and legal repercussions they could face for violating the franchise agreement. The ability for Kitchen Solvers to recover legal fees and costs could significantly increase the financial burden on a franchisee found in breach. The inclusion of specific performance as a remedy highlights the importance Kitchen Solvers places on franchisees adhering to the terms of the agreement.
However, it's important to note that an addendum to the Kitchen Solvers Franchise Agreement for the state of Minnesota modifies these terms. Specifically, Minnesota law prohibits Kitchen Solvers from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties, or judgment notes. This addendum also states that nothing in the Franchise Disclosure Document or agreements can reduce any of franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Therefore, prospective franchisees should be aware of any state-specific addenda that may modify the remedies available to Kitchen Solvers.