Is a bond required for Bambu or the franchisee to obtain temporary or preliminary injunctive relief?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
s behalf or on behalf of any of the Franchisee Affiliates by any third party, including but not limited to any association representing Franchisee.
- 23.4 Injunctive Relief. Notwithstanding anything to the contrary contained in this Article 23, Bambu and Franchisee will each have the right in a proper case to obtain temporary or preliminary injunctive relief from a court of competent jurisdiction. Each party agrees that the other party may have such temporary or preliminary injunctive relief, without bond, but upon due notice, and with the sole remedy in the event of the entry of such injunctive relief being the dissolution of such injunctive relief, if warranted, upon hearing
duly held (all claims for damages by reason of the wrongful issuance of such injunction being expressly waived by each party). Any such action will be brought as provided in Section 23.5 below.
- 23.5 Governing Law/Consent to Jurisdiction/Waiver of Jury Trial.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, both Bambu and the franchisee have the right to seek temporary or preliminary injunctive relief from a court. Generally, injunctive relief is a court order that requires a party to do or cease doing a specific action. The standard practice is that the party seeking the injunction must post a bond.
However, the franchise agreement states that either party may obtain such relief "without bond." This means that neither Bambu nor the franchisee would typically be required to post a bond to secure a temporary or preliminary injunction. The agreement specifies that the only remedy in the event of injunctive relief is the dissolution of the injunction if a hearing warrants it, and both parties waive any claims for damages resulting from the wrongful issuance of an injunction.
However, the FDD includes a modification specific to Minnesota franchisees. According to this modification, a franchisee in Minnesota cannot consent to Bambu obtaining injunctive relief, and the court will determine if a bond is required. This means that while the standard agreement waives the bond requirement, a court in Minnesota will make the final decision on whether Bambu needs to post a bond to obtain injunctive relief against a franchisee in that state.