What other remedies are available to Mrcool as set forth in the Agreement?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
by limiting the scope of the Prohibited Activities, narrowing the definition of a Competitive Business, shortening the duration of the Post-Term Restricted Period, reducing the geographic scope of the Restricted Territory and/or reducing the scope of any other covenant imposed upon Franchisee under this Article 6 to ensure that the terms and covenants are enforceable under applicable law.
6.H. BREACH OF RESTRICTIVE COVENANTS AND OBLIGATIONS
Franchisee agrees that Franchisee's failure and/or Franchisee's Owner(s) failure to comply with the restrictive covenants and obligations set forth in this Article 6 will cause irreparable harm to Franchisor and/or other MRCOOL Center franchisees for which there is no adequate remedy at law. Franchisee agrees that any violation of these Article 6 covenants and obligations by either Franchisee and/or any Owner(s) will entitle Franchisor to injunctive relief. Franchisee agrees that Franchisor may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of Franchisee, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the Franchisee and Franchisor agree that the amount of the bond shall not exceed $1,000. Franchisor's remedies under this Article 6.H. are not exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
6.I. OWNERSHIP OF INNOVATIONS, IMPROVEMENTS, AND INFORMATION
Franchisee agrees that with regard to the Franchised Business all customer lists and their contents and information represent Confidential Information and constitute an asset of Franchisor whether or not such information was supplied by Franchisor. During the Term of this Agreement and in connection with the development, establishment, marketing, promotion and operation of the Franchised Business, Franchisee shall disclose to Franchisor all of Franchisee's ideas, concepts, methods and products conceived or developed by Franchisee and Franchisee's affiliates, Owners, agents, and employees relating to the development and operation of MRCOOL Centers. Franchisee hereby assigns to Franchisor and Franchisee agrees to procure from Franchisee's Owners, affiliates and employees assignment of any such ideas,
concepts, methods, and products that Franchisee is required to disclose to Franchisor under this Article 6.I. Franchisor shall have no obligation to make any lump sum or on-going payments to Franchisee or Franchisee's Owners, affiliates or employees with respect to any such idea, concept, method, technique or product.
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool has several remedies available in the event of a franchisee's breach of the franchise agreement. Specifically, if a franchisee fails to comply with restrictive covenants and obligations, Mrcool is entitled to injunctive relief. This means Mrcool can seek a court order to compel the franchisee to stop the violating behavior. Mrcool can pursue this injunctive relief without posting a bond, although if a court requires a bond, the franchisee and Mrcool agree that the bond amount will not exceed $1,000.
In addition to injunctive relief, Mrcool can pursue other remedies available under the agreement, at law, or in equity. These include specific performance, which compels the franchisee to fulfill the terms of the agreement, and recovery of monetary damages to compensate for losses suffered due to the breach. Mrcool's remedies are not exclusive and can be combined, allowing Mrcool to pursue multiple avenues of recourse simultaneously.
Furthermore, the franchise agreement stipulates that the franchisee acknowledges that failure to comply with the terms of the agreement will cause irreparable harm to Mrcool and its franchisees, for which there is no adequate remedy at law. The franchisee also waives any right to challenge the terms of the agreement as overly broad, unreasonable, or otherwise unenforceable. This waiver reinforces Mrcool's ability to enforce the agreement and seek appropriate remedies in case of a breach.