In the event of a breach of the agreement, can Bambu seek injunctive relief?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Consequently, enforcement of this covenant will not deprive Associate of his or her personal goodwill or ability to earn a living.
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- Injunction. Associate acknowledges and agrees that in the event of any breach or threatened breach of this Agreement, Bambu and Franchisee, or either one separately, shall be authorized and entitled to seek, from any court of competent jurisdiction, 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; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly waived by Associate.
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- Assignment.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 FDD, Bambu has the right to seek injunctive relief in the event of a breach of the agreement. Specifically, both Bambu and the franchisee acknowledge and agree that in the event of any breach or threatened breach of the agreement, Bambu and the franchisee, or either one separately, can seek preliminary and permanent injunctive relief from a court of competent jurisdiction. This is in addition to any other rights or remedies to which Bambu and/or the franchisee may be entitled.
The franchisee agrees that Bambu may obtain such injunctive relief, and the FDD states that the bond will not total more than $500, but upon due notice. The franchisee's sole remedy in the event of the entry of such injunctive relief is the dissolution of such injunctive relief, if warranted, upon hearing duly had. The franchisee expressly waives all claims for damages by reason of the wrongful issuance of any such injunction.
However, the FDD also includes a modification for franchisees in Minnesota. According to Minnesota Rule 2860.4400(J), a franchisee cannot consent to a franchisor obtaining injunctive relief. The franchisor may seek injunctive relief, and a court will determine if a bond is required. This means that while the standard agreement allows Bambu to seek injunctive relief with a limited bond, Minnesota franchisees have additional protections under state law regarding injunctive relief and bond requirements.