Besides injunctive relief, what other remedies are available to Pearce Bespoke in the event of a franchisee breach?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Section 19, Franchisee recognizes that the failure of a single franchisee to comply with the terms of its Pearce Bespoke Franchise Agreement would cause irreparable harm to Franchisor or to some or all other Pearce Bespoke franchisees. Franchisor and Franchisee therefore agree that, in the event of a breach or threatened breach of Sections 3, 8, 9, 12, 13, 14, 17, and/or 18 of this Agreement by Franchisee or in the event of any conduct by Franchisee which is illegal or is dishonest or misleading to Franchisee's customers or prospective customers or may impair the goodwill associated with the Marks, Franchisor may obtain a temporary, preliminary, or permanent injunction restraining such breach or obtain a decree of specific performance, without showing or proving any actual damage and without posting any bond or other security. The foregoing equitable remedy will be in addition to, and not in lieu of, all other remedies or rights which Franchisor might otherwise have by virtue of any breach of this Agreement by Franchisee.
E. Attorney's Fees.
The non-prevailing party will pay all costs and expenses, including reasonable attorney's fees, incurred by the prevailing party in any arbitration or action in court between Franchisor and Franchisee.
F. Reimbursement of Costs.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, in the event of a breach or threatened breach by a franchisee, Pearce Bespoke can seek a temporary, preliminary, or permanent injunction. This allows Pearce Bespoke to legally restrain the franchisee from continuing the breach. Additionally, Pearce Bespoke can pursue a decree of specific performance, compelling the franchisee to fulfill their obligations under the Franchise Agreement. These remedies are available without Pearce Bespoke needing to demonstrate actual damages or post a bond or security.
In addition to injunctive relief and specific performance, Pearce Bespoke is entitled to all other remedies or rights available to them under the law or the Franchise Agreement. The non-prevailing party in any arbitration or court action between Pearce Bespoke and the franchisee is responsible for covering all costs and expenses, including reasonable attorney's fees, incurred by the prevailing party.
Furthermore, franchisees are required to secure confidentiality and non-competition agreements from employees with managerial duties and access to confidential information. Franchisees must actively pursue breaches of these agreements. Failure to obtain these agreements or to prosecute breaches can result in the franchisee being liable to indemnify and hold Pearce Bespoke harmless from any resulting liability, loss, attorneys' fees, or damage.