Can Monicals Pizza Company bring claims for injunctive relief where the franchisee is located?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that any breach by Franchisee of any of the restrictions contained in Sections 6, 7 and 17 would result in irreparable injury to Franchisor, and that the damages arising out of any such breach would be difficult to ascertain, therefore, in addition to all other remedies provided by law or in equity, Franchisor shall be entitled to all equitable remedies, including injunctive relief (whether a restraining order, a preliminary injunction or a permanent injunction) against without requirement to post bond, with respect to any such breach, whether actual or contemplated, and Franchisee specifically waives any and all defenses to injunctive relief and Franchisee shall be responsible for Franchisor's reasonable attorneys' fees incurred in pursuing the same. Franchisor's right to seek injunctive relief shall take precedence over the covenant to arbitrate all disputes in accordance with Section 23.7. Franchisor's rights herein shall include pursuing injunctive relief through arbitration or in a state or federal court.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza has the right to seek injunctive relief against a franchisee for breaches of the franchise agreement. Specifically, if a franchisee violates sections 6, 7, and 17 of the agreement, Monicals Pizza is entitled to equitable remedies, including injunctive relief, without needing to post a bond. This applies to both actual and contemplated breaches.
This means that Monicals Pizza can pursue legal action to prevent a franchisee from violating the terms of the agreement, such as those related to proprietary marks, confidentiality, and non-competition. The franchisee also waives any defenses against such injunctive relief and is responsible for Monicals Pizza's legal fees in pursuing it. This right to seek injunctive relief supersedes the agreement to arbitrate disputes, allowing Monicals Pizza to pursue relief through arbitration or in state or federal court.
For a prospective Monicals Pizza franchisee, this clause highlights the importance of adhering to the restrictions outlined in sections 6, 7, and 17 of the franchise agreement. Failure to comply can result in immediate legal action, potentially leading to a court order preventing certain activities. The franchisee's waiver of defenses and responsibility for legal fees further emphasize the seriousness of these restrictions and the potential financial burden of non-compliance.