Does All Team require a bond for injunctive relief in the event of a franchisee breach?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
ce only and shall not define, limit, or extend the scope or intent of this Agreement or any provision thereof.
- J. Effect. This Agreement shall be binding upon and inure to the benefit of the parties, their legal representatives, heirs, administrators, executors, their permitted successors and assigns.
- K. Remedies. In addition to any other remedies to which it may be entitled, ATFC shall be entitled without bond to entry of injunctive relief and orders of specific performance enforcing the provisions of this Agreement, in the event FRANCH
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisor, All Team Franchise Corporation (ATFC), is entitled to injunctive relief without bond in the event of a franchisee breach. Specifically, ATFC is entitled to injunctive relief and orders of specific performance enforcing the provisions of the Franchise Agreement, should the franchisee breach the agreement. This means that All Team does not have to provide a financial guarantee to the court to cover potential damages to the franchisee if the injunction is later found to be wrongfully issued.
However, the FDD also states that for franchises governed by Minnesota law, the franchisee cannot consent to the franchisor obtaining injunctive relief. The document further clarifies that a court will determine if a bond is required. This indicates that while All Team's standard agreement may waive the bond requirement, Minnesota franchise law supersedes this provision, leaving the bond decision to the court's discretion.
For a prospective All Team franchisee, this has several implications. First, outside of Minnesota, All Team can seek immediate injunctive relief against a franchisee without having to post a bond. Second, in Minnesota, a judge will decide whether All Team needs to post a bond. Therefore, a franchisee in Minnesota may have additional protection compared to franchisees in other states. Finally, it is important for prospective franchisees to understand the specific laws in their state and how they interact with the franchise agreement.