Does the Learningrx Area Developer consent to an injunction prohibiting conduct violating Section 9?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
notice thereof, and Area Developer agrees that it shall forthwith comply with any covenant as so modified, which shall be fully enforceable.
- 9.05. Defenses. Area Developer expressly agrees that the existence of any claims it may have against Franchisor, whether or not arising from this Agreement, shall not constitute a defense the enforcement by Franchisor of the covenants in this Section 9. Area Developer agrees to pay all costs and expenses (including reasonable attorneys' fees) incurred by Franchisor in connection with the enforcement of this Section 9 provided Franchisor prevails in any or all of its claims against Area Developer.
- 9.06. Irreparable Injury. Area Developer acknowledges that Area Developer's violation of the terms of this Section 9 would result in irreparable injury to Franchisor for which no adequate remedy at law may be available, and Area Developer accordingly consents to the issuance of an injunction by any court of competent jurisdiction or arbitrator having jurisdiction over the Agreement prohibiting any conduct by Area Developer in violation of the terms of this Section 9.
- 9.07. Additional Agreement.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the Area Developer consents to the issuance of an injunction under certain conditions. Specifically, the Area Developer acknowledges that violating the terms of Section 9 of the agreement would cause irreparable injury to Learningrx, for which there may be no adequate legal remedy.
Consequently, the Area Developer agrees to an injunction issued by a court or arbitrator that has jurisdiction over the agreement. This injunction would prohibit any conduct by the Area Developer that violates the terms outlined in Section 9.
This means that Learningrx can seek immediate court intervention to stop the Area Developer from actions that breach Section 9, such as disclosing confidential information or competing unfairly. This is a common provision in franchise agreements to protect the franchisor's interests and brand.
However, it is important to note that the FDD also states that in the event of injunctive relief exceeding $500, the Area Developer's sole remedy is the dissolution of such injunctive relief, if warranted, upon hearing duly had; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly waived by the Area Developer. Area Developer agrees that injunctive relief may be appropriate in the following situations including, but not limited to, using products outside the bounds of the franchise agreement, violating in-term and post-term non-competes, and trademark infringement.