Under the Anago Subfranchise Agreement assignment, can the Franchisor seek injunctive relief in any appropriate jurisdiction?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR 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 franchisor has the option to seek injunctive relief in any appropriate jurisdiction under the Subfranchise Agreement assignment. Specifically, Anago can bring an action seeking equitable relief to enforce the terms of the assignment in any court of competent jurisdiction. This is to prevent real or threatened harm, and the assignee and assignor consent to the entry of injunctive relief. This includes temporary restraining orders and preliminary and permanent injunctions without the requirement of a bond, according to the usual equity rules in the jurisdiction where such relief is sought.
This means that if a subfranchisee or assignor violates the terms of the assignment, Anago can immediately seek a court order to stop the violation or prevent a threatened breach. This right is designed to protect Anago's interests and maintain the integrity of its franchise system. The consent by the assignee and assignor to injunctive relief underscores the importance of adhering to the terms of the assignment.
This ability to seek injunctive relief is a significant protection for Anago, allowing them to swiftly address potential harm to their brand and business operations. It also means that subfranchisees and assignors must be aware of their obligations under the assignment and the potential legal consequences of failing to meet those obligations. The waiver of a bond requirement further streamlines Anago's ability to obtain such relief, reducing potential costs and delays.