Does the Bambu franchisee waive claims for damages by reason of the wrongful issuance of an injunction?
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 the 2025 Bambu Franchise Disclosure Document, a franchisee expressly waives all claims for damages resulting from the wrongful issuance of an injunction. This waiver is part of the agreement where both Bambu and the franchisee have the right to seek injunctive relief from a court of competent jurisdiction in the event of a breach or threatened breach of the agreement.
Bambu can obtain injunctive relief without posting a bond exceeding $500, provided they give due notice. The franchisee's sole remedy if an injunction is entered is to seek its dissolution if warranted after a hearing. However, the franchisee gives up any right to claim monetary damages if the injunction was wrongfully issued.
This waiver means that if a Bambu franchisee believes an injunction was wrongly issued against them, their recourse is limited to getting the injunction lifted. They cannot sue Bambu for financial losses incurred because of the injunction, even if it's proven to be wrongfully issued. This could include lost profits, legal fees, or other costs associated with complying with the injunction.
However, the Hawaii Rider to the Franchise Agreement does provide an exception. No statement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on any statement made by Bambu. Additionally, in Minnesota, a franchisee cannot consent to Bambu obtaining injunctive relief, and a court will determine if a bond is required.