Can Aw seek injunctions against franchisees for actions that constitute a danger to the public?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
18.3 Exceptions to Arbitration. Notwithstanding Section 18.2 above,
- (a) We are entitled, without being required to post a bond, to seek the entry of temporary and permanent injunctions and orders of specific performance in a court of competent jurisdiction to: (1) enforce the provisions of this Agreement relating to your use of the Marks and your non-disclosure and non-competition obligations under this Agreement; (2) prohibit any act or omission by you or your employees that constitutes a violation of any applicable law, ordinance or regulation, constitutes a danger to the public, or may impair the goodwill associated with the Marks or cause irreparable harm to us or the Papa Ray's Pizza franchises. You agree to waive any claims for damages in the event there is a later determination that an injunction or specific performance order was issued improperly.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, Aw is entitled to seek injunctions against franchisees in certain situations. Specifically, Aw can seek temporary and permanent injunctions and orders of specific performance in a court of competent jurisdiction to prohibit any action or omission by a franchisee or their employees that constitutes a danger to the public.
This means that if a franchisee's actions or inactions pose a risk to public safety, Aw can take legal action to stop the franchisee. This could include seeking a court order to immediately cease the dangerous activity. This clause protects Aw's brand and reputation by ensuring franchisees do not endanger the public.
It is important to note that Aw is not required to post a bond when seeking such injunctions. Additionally, franchisees agree to waive any claims for damages if a court later determines that the injunction or specific performance order was issued improperly. This highlights the seriousness of actions that could endanger the public and the measures Aw can take to address such situations.