What specific equitable remedies is Learningrx entitled to in the event of a breach or threatened breach of the agreement?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee Affiliate agree that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, Franchisor shall be entitled to enforce the provisions of this Agreement and shall be entitled, in addition to any other remedies that are made available to it at law or in equity, including the right to terminate the Franchise Agreement, to a temporary and/or permanent injunction and/or a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security. Franchisee and Franchisee Affiliate agree that Franchisee's and/or Franchisee Affiliate's sole remedy in the event of the entry of such injunctive relief shall be 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 Franchisee and by Franchisee Affiliate.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, Learningrx outlines specific equitable remedies available to them in the event a franchisee breaches or threatens to breach the franchise agreement. The document states that Learningrx would be irreparably injured and lack an adequate remedy at law if a breach occurs.
Therefore, Learningrx is entitled to enforce the provisions of the agreement. This includes the right to seek a temporary or permanent injunction and/or a decree for specific performance of the agreement's terms. This entitlement exists without Learningrx needing to demonstrate actual or threatened harm or to provide a bond or other security. The franchisee's sole recourse, should such injunctive relief be granted, is to seek dissolution of the injunction if warranted after a hearing. The franchisee also waives any claims for damages resulting from the wrongful issuance of an injunction.
This section of the franchise agreement essentially allows Learningrx to quickly seek court intervention to prevent further damage from a breach, without the typical requirements of proving immediate harm or posting a bond. This is a significant advantage for Learningrx, as it can swiftly enforce the agreement and protect its interests. However, the franchisee retains the right to challenge the injunction and seek its removal if they believe it was wrongly issued, although they cannot claim monetary damages for its initial imposition.