In the event of the entry of injunctive relief, what is the sole remedy available to either Bambu or the franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in the event of injunctive relief, the sole remedy available to either party is the dissolution of the injunctive relief, if warranted, upon a duly held hearing. This means that if a court issues an order requiring a party to do or not do something (injunctive relief), the only recourse is to request the court to reverse or dissolve that order.
This clause also stipulates that all claims for damages due to the wrongful issuance of the injunction are expressly waived by each party. Therefore, neither Bambu nor the franchisee can seek financial compensation for any losses incurred if the injunction was wrongly issued. This could have significant implications if a franchisee suffers financial harm due to an injunction that is later found to be unjustified.
This type of clause is relatively common in franchise agreements, as it aims to limit the potential legal battles and financial exposure of both parties. However, franchisees should carefully consider the implications of waiving their right to claim damages, as it could leave them vulnerable in certain situations. Franchisees should seek legal counsel to fully understand their rights and obligations under the franchise agreement.