factual

Can Kitchen Solvers seek injunctive relief if I violate the non-competition covenants?

Kitchen_Solvers Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event you breach or threaten to breach any of the terms of this Agreement, we will 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 the arbitrators make a final and binding determination.

Source: Item 23 — Receipts (FDD pages 49–190)

What This Means (2025 FDD)

According to Kitchen Solvers' 2025 Franchise Disclosure Document, if a franchisee breaches or threatens to breach any terms of the Franchise Agreement, Kitchen Solvers is entitled to seek an injunction. This injunction would restrain the franchisee from continuing the breach. Kitchen Solvers can also pursue a decree of specific performance without needing to demonstrate actual damages. Furthermore, Kitchen Solvers can recover reasonable attorneys' fees and other costs incurred while obtaining this equitable relief. This entitlement remains in effect until arbitrators make a final and binding determination.

However, this ability to seek injunctive relief is subject to certain state laws. For instance, the addendum to the Kitchen Solvers Franchise Agreement for the state of Minnesota clarifies that in the event of a breach or threatened breach of any of the terms of the Agreement, the other party will 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.

This means that Kitchen Solvers can take immediate legal action to prevent a franchisee from violating the agreement, particularly concerning non-competition. This is a common practice in franchising to protect the brand and the interests of other franchisees. The franchisee may be responsible for Kitchen Solver's legal fees if they are found in breach of contract.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.