Does the Anago assignment agreement require a bond for the entry of injunctive relief?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
SUBFRANCHISOR shall have the option, at its sole discretion, of bringing any action seeking equitable relief to enforce the terms of this Assignment in any court of competent jurisdiction in order to prevent real or threatened harm, and ASSIGNOR and ASSIGNEE consent to the entry of injunctive relief, including, without limitation, temporary restraining orders and/or preliminary and permanent injunctions without the requirement of bond, according to the usual equity rules in the jurisdiction in which such relief is sought.
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the assignment agreement addresses the requirement of a bond for injunctive relief. Specifically, it states that Anago has the option to seek equitable relief in any court to prevent harm, and the assignee and assignor both consent to the entry of injunctive relief without the necessity of a bond. This waiver of a bond requirement applies to temporary restraining orders, preliminary injunctions, and permanent injunctions. The agreement specifies that this is according to the usual equity rules of the jurisdiction where the relief is sought.
This means that if Anago seeks an injunction against an assignor or assignee, the company is not automatically required to post a bond. A bond is a form of security deposit that would be forfeited if the injunction is later found to be wrongfully issued. The waiver of this bond requirement can make it easier and less expensive for Anago to obtain injunctive relief.
However, the clause also states that the injunctive relief will be granted according to the "usual equity rules" of the relevant jurisdiction. This suggests that while Anago does not believe a bond should be required, the ultimate decision rests with the court, which may still require a bond based on the specific circumstances and applicable laws. Therefore, while the assignment agreement aims to waive the bond requirement, the court has the final say.