What is the franchisee's sole remedy if Angry Chickz obtains injunctive relief?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Company may have temporary or preliminary injunctive relief without bond, but upon due notice, and Franchisee's sole remedy in the event of the entry of such injunctive relief will be the dissolution of the injunctive relief, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any the injunction being expressly waived).
Source: Item 22 — CONTRACTS (FDD page 54)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, both Angry Chickz and the franchisee have the right to seek injunctive relief to enforce the franchise agreement. If Angry Chickz obtains temporary or preliminary injunctive relief against a franchisee, the franchisee's sole remedy is to pursue the dissolution of that injunctive relief.
This means that if a court issues an injunction against the franchisee at Angry Chickz's request, the franchisee's only recourse is to attempt to have the injunction lifted. The franchisee expressly waives the right to claim monetary damages resulting from the injunction, even if it is later determined that the injunction was wrongfully issued.
This clause is significant because it limits the franchisee's legal options in the event of an injunction. While the franchisee can challenge the injunction itself, they cannot seek compensation for any financial losses incurred as a result of the injunction, which is a considerable risk. Prospective franchisees should carefully consider this limitation and seek legal counsel to understand its implications fully.