If a court requires a bond for injunctive relief related to the Anago Subfranchise Agreement, what is the agreed-upon sufficient bond amount?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
y virtue of any breach of this Agreement by Subfranchisor.
- (b) Franchisor is entitled to seek injunctive relief without the posting of any bond or security to obtain the entry of temporary and permanent ex parte injunctions and/or orders of specific
performance enforcing the terms of this Agreement, including in connection with Subfranchisor's use of the Proprietary Marks, the obligations of Subfranchisor upon termination or expiration of this Agreement, any transfers restricted under this Agreement concerning interests in Subfranchisor, its business and this Agreement, the assignment or proposed assignment of its business, this Agreement or any ownership interest in Subfranchisor (and if a bond is nevertheless required by a court of competen
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, in the event that a court requires a bond for injunctive relief related to the Subfranchise Agreement, the parties agree that $100 is considered a sufficient bond. This agreement extends to situations where an ex parte injunction is denied and notice of the motion is required. The document also specifies that service of the lawsuit and/or motion for injunctive relief constitutes sufficient notice.
This provision is designed to limit the financial burden on Anago in cases where it seeks injunctive relief against a subfranchisee. Injunctive relief is a court order that requires a party to do or cease doing a specific action. By pre-agreeing to a $100 bond, the subfranchisee acknowledges that this amount is sufficient to cover any potential damages they might incur if the injunction is later found to be wrongfully issued.
For a prospective Anago subfranchisee, this means that the cost of a bond, should one be required, is capped at a nominal amount. This could be beneficial, as it reduces the potential financial risk associated with legal disputes. However, it's important to understand the circumstances under which injunctive relief might be sought and to comply with the terms of the Subfranchise Agreement to avoid such situations. This clause reflects Anago's intention to ensure compliance with the agreement while minimizing the financial impact of potential legal actions on both parties.