factual

Does the All Team franchise agreement require proof of actual damages for injunctive relief?

All_Team Franchise · 2025 FDD

Answer from 2025 FDD Document

Injunctive Relief.

In the event of any breach or threatened breach of this Agreement by any party, the other party shall immediately be entitled to injunctive relief, in addition to any other remedies available to it, (including a temporary restraining order, preliminary injunction and specific performance) without showing or proving any actual damage sustained and shall not thereby be deemed to have elected its only remedy to the exclusion of others.

Source: Item 22 — CONTRACTS (FDD pages 33–34)

What This Means (2025 FDD)

According to the 2025 All Team Franchise Disclosure Document, in the event of a breach or threatened breach of the agreement, All Team is entitled to injunctive relief without needing to show or prove any actual damages. This means that All Team can seek a court order to stop a franchisee from violating the agreement without having to demonstrate that it has suffered financial harm. This could include a temporary restraining order, preliminary injunction, and specific performance.

This provision is significant for prospective franchisees because it lowers the bar for All Team to obtain an injunction against them. Typically, a party seeking an injunction must demonstrate that they will suffer irreparable harm if the injunction is not granted. However, under this clause, All Team does not have to prove actual damages, making it easier for them to obtain injunctive relief.

Franchisees should be aware of this provision and understand that All Team can quickly seek court intervention to enforce the franchise agreement, even if the financial impact of the breach is not immediately clear. This could have serious implications for a franchisee's ability to operate their business if they are found to be in breach of the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.