Under what conditions are Southern Steer franchisees and franchisors entitled to injunctive relief?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Section 20 will preclude the Franchisor from seeking other remedies or Damages under any state or federal law, common law, or under this Agreement against the Franchisee including, but not limited to, attorneys' fees and injunctive relief.
If this Agreement is terminated by the Franchisor pursuant to this Section 20, or if the Franchisee breaches this Agreement by
a wrongful termination or a termination that is not in strict compliance with the terms and conditions of this Agreement, then the Franchisor will be entitled to seek recovery of all Damages that the Franchisor has sustained and will sustain in the future as a result of the Franchisee's breach of this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer, as the franchisor, retains the right to seek various remedies against a franchisee, including injunctive relief, under state or federal law, common law, or the franchise agreement. This broad entitlement allows Southern Steer to pursue legal action to compel a franchisee to perform specific actions or cease certain behaviors that violate the franchise agreement or applicable laws. Injunctive relief is not the only remedy available to Southern Steer, as they can also pursue damages and attorney's fees.
Specifically, Southern Steer can seek injunctive relief if the franchise agreement is terminated by Southern Steer due to the franchisee's actions, or if the franchisee breaches the agreement through wrongful termination or termination not in strict compliance with the agreement's terms. In such cases, Southern Steer is entitled to recover all damages sustained, both present and future, resulting from the franchisee's breach. This provision ensures that Southern Steer can protect its brand, system standards, and financial interests when a franchisee fails to meet their contractual obligations.
For a prospective franchisee, this means that strict adherence to the franchise agreement is crucial. Any deviation from the agreement's terms, especially regarding termination, could lead to legal action, including injunctions and significant financial liabilities. Franchisees should be aware of their obligations and seek legal counsel if they are unsure about any aspect of the agreement to avoid potential breaches and the associated legal consequences.