Can Bambu or the franchisee seek injunctive relief under the MUD Agreement?

According to Bambu's 2025 Franchise Disclosure Document, both Bambu and the franchisee have the right to seek injunctive relief under the MUD (Multi-Unit Development) Agreement. Specifically, either party can pursue temporary or preliminary injunctive relief from a court of competent jurisdiction in appropriate cases. This means that if either Bambu or the franchisee believes that the other party is taking actions that could cause immediate and irreparable harm, they can ask a court to order the party to stop those actions while the matter is being resolved.

An important aspect of this provision is that such injunctive relief may be granted without requiring a bond. However, the party against whom the injunction is issued is entitled to due notice and a hearing. The sole remedy for the enjoined party, if the injunction is deemed unwarranted, is the dissolution of the injunction itself. Both parties expressly waive any claims for damages resulting from the wrongful issuance of the injunction. This suggests that the focus is on quickly preventing potential harm rather than seeking monetary compensation for any harm that may occur due to the injunction itself.

This right to seek injunctive relief is a fairly standard provision in franchise agreements, as it allows both parties to protect their interests when faced with potential irreparable harm. However, the waiver of damages for wrongful issuance of an injunction is a notable point. Prospective franchisees should understand that if an injunction is issued against them and later dissolved, their recourse is limited to simply having the injunction lifted, rather than seeking compensation for any losses they may have incurred as a result of the injunction. This underscores the importance of carefully considering the potential implications before seeking injunctive relief and ensuring that there is a strong legal basis for doing so.