Does the Associate waive claims for damages due to wrongful issuance of an injunction related to a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
sdiction, preliminary and permanent injunctive relief in addition to any other rights or remedies to which Bambu and/or Franchisee may be entitled. Associate agrees that Bambu may obtain such injunctive relief, without posting a bond or bonds totaling more than $500, but upon due notice, and Associate's sole remedy in the event of the entry of such injunctive relief shall be dissolution of such injunctive relief, if warranted, upon hearing duly had
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Associate expressly waives all claims for damages resulting from the wrongful issuance of an injunction. Bambu is authorized to seek preliminary and permanent injunctive relief from a court of competent jurisdiction in the event of any breach or threatened breach of the agreement.
Bambu may obtain injunctive relief without posting a bond exceeding $500, provided due notice is given. The Associate's sole remedy if an injunction is entered is to seek its dissolution if warranted after a hearing. However, the Associate explicitly agrees to waive any claims for damages if the injunction is wrongfully issued.
This waiver means that if an Associate believes an injunction was wrongly issued against them, they cannot sue Bambu for any financial losses or other damages they incur as a result of the injunction. Their only recourse is to attempt to have the injunction dissolved. This could have significant financial implications for the Associate, as they would have no way to recover losses caused by an injunction, even if it was later determined to be unjustified.
This type of clause is not uncommon in franchise agreements, as franchisors often seek to protect their brand and system standards through injunctive relief. However, the waiver of damages places a significant risk on the Associate, who may suffer substantial losses without any means of compensation if an injunction is wrongly issued. Prospective Associates should carefully consider this provision and seek legal advice to understand the full implications before signing the agreement.