Under what circumstances can Subfranchisor seek injunctive relief in any appropriate jurisdiction related to the Anago Assignment?
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, a Subfranchisor has the option to seek injunctive relief in any court of competent jurisdiction to enforce the terms of the Assignment. This action can be taken to prevent real or threatened harm. The Assignor and Assignee, in this case, consent to the entry of injunctive relief, which includes temporary restraining orders and preliminary or permanent injunctions, without the requirement of a bond. This is according to the usual equity rules in the jurisdiction where such relief is sought.
This means that if Anago's Subfranchisor believes that the Assignor or Assignee are not adhering to the terms outlined in the Assignment, and that this non-compliance is causing or threatening to cause actual harm, the Subfranchisor can take legal action. This legal action aims to obtain a court order that compels the Assignor or Assignee to comply with the terms of the Assignment. The consent of the Assignor and Assignee to injunctive relief simplifies the process, as it indicates their agreement to abide by court orders.
For a prospective Anago franchisee, this clause provides a mechanism to protect their interests and the integrity of the Anago franchise system. It ensures that all parties involved in the Assignment are held accountable for their obligations, and that any potential harm resulting from non-compliance can be addressed promptly through legal means. The absence of a bond requirement for injunctive relief can reduce the financial burden on the Subfranchisor when seeking such remedies.