Does Bambu require a bond for 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. The document states that each party agrees that the other may obtain such relief without a bond, provided due notice is given.
This means that if Bambu seeks an injunction against a franchisee, or vice versa, the party seeking the injunction generally does not have to post a bond. A bond is a sum of money deposited with the court, which could be forfeited if the injunction is later determined to have been wrongly issued and caused damages to the other party. The only remedy available to the party against whom the injunction is issued is the dissolution of the injunction if warranted by a hearing.
However, there is an exception for franchisees in Minnesota. For those franchisees, a court will determine if a bond is required. This means that the standard waiver of a bond does not automatically apply, and the court will decide based on the specific circumstances of the case whether a bond is necessary for injunctive relief.
This difference highlights the importance of understanding the specific legal requirements in the franchisee's state. Prospective franchisees should consult with a legal professional to fully understand their rights and obligations regarding injunctive relief and bond requirements, particularly if they are considering opening a Bambu franchise in Minnesota.