What is the bond amount Annex Brands must post to obtain injunctive relief for a covenant violation?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
inue in effect.
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- Injunctive Relief. We or Franchisor, in addition to other legal and equitable rights, will be entitled to seek to obtain temporary, preliminary or permanent injunctive relief, on posting a $1,000 bond, restraining your actual or threatened violation of any covenant in
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands' 2025 Franchise Disclosure Document, Annex Brands or the Franchisor is entitled to seek temporary, preliminary, or permanent injunctive relief to restrain a franchisee's actual or threatened violation of any covenant in the agreement. To obtain this injunctive relief, Annex Brands must post a $1,000 bond.
This means that if an Annex Brands franchisee violates a covenant within the franchise agreement, such as those related to confidential information or non-competition, Annex Brands can seek a court order to stop the franchisee's actions. As a prerequisite for the court to grant this order, Annex Brands must provide a bond of $1,000, which serves as a form of security or assurance.
The requirement of posting a bond is a common legal practice to protect the party being restrained (in this case, the franchisee) from potential damages if the injunction is later found to be unjustified. The bond amount is relatively low, which could make it easier and less expensive for Annex Brands to pursue injunctive relief compared to franchise systems that require higher bonds.