Can Mrcool seek an injunction to prevent the franchisee from operating the Mrcool Center?
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 in
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, Mrcool can seek injunctive relief against a franchisee to prevent them from operating the Mrcool Center if the franchisee fails to comply with the restrictive covenants and obligations outlined in Article 6 of the franchise agreement. The agreement specifies that such non-compliance will cause irreparable harm to Mrcool and its other franchisees, making legal remedies inadequate. This means Mrcool can ask a court to order the franchisee to stop the violating behavior immediately.
The franchisee agrees that Mrcool can apply for injunctive relief without needing to post a bond, although due notice must be provided. If a court requires a bond despite this agreement, the maximum bond amount is $1,000. The franchisee's sole remedy, if an injunction is issued, is to seek the dissolution of the injunction at a hearing. The franchisee waives all claims for damages resulting from a wrongfully issued injunction.
Mrcool's right to seek an injunction is not the only remedy available. Mrcool can combine this with other legal or equitable remedies, including specific performance (forcing the franchisee to fulfill the agreement) and monetary damages. This provision strengthens Mrcool's position, allowing them to act swiftly to protect their brand and system from harm caused by a franchisee's breach of the restrictive covenants and obligations.