Does the Apricot Lane Associate waive claims for damages due to wrongful issuance of an injunction?
Apricot_Lane Franchise · 2025 FDDAnswer from 2025 FDD Document
t be applicable to the ownership of shares of a class of securities listed on a stock exchange or traded on the over-the-counter market that represent five percent (5%) or less of the number of shares of that class of securities issued and outstanding. Associate expressly acknowledges that Associate possesses skills and abilities of a general nature and has other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive Associate of Associate's personal goodwill, or ability to earn a living.
- 8. Injunction. Associate hereby acknowledges and agrees that in the event of any breach or threatened breach of this Agreement, the Franchisor shall be authorized and entitled to seek, from any court of competent jurisdiction, preliminary and permanent injunctive relief in ad
Source: Item 23 — RECEIPTS (FDD pages 51–222)
What This Means (2025 FDD)
According to the 2025 Apricot Lane Franchise Disclosure Document, the Associate expressly waives all claims for damages resulting from the wrongful issuance of an injunction. This means that if Apricot Lane seeks and obtains an injunction against the Associate, and it is later determined that the injunction was wrongfully issued, the Associate cannot sue Apricot Lane for any damages they incurred as a result of the injunction.
The FDD specifies that Apricot Lane can seek preliminary and permanent injunctive relief from a court of competent jurisdiction in the event of any breach or threatened breach of the agreement. Apricot Lane may obtain such injunctive relief without posting a bond of $500 or more, but upon due notice. The Associate's sole remedy if an injunction is entered is to seek dissolution of the injunction if warranted after a hearing.
This waiver is a significant point for potential Associates to consider. In practical terms, even if an injunction causes financial losses or other harm to the Associate's business, they are giving up their right to seek compensation from Apricot Lane for those damages. This clause highlights the importance of carefully reviewing the franchise agreement and understanding the potential legal ramifications of any disputes that may arise.