What is the sole remedy in the event of the entry of injunctive relief for a Bambu franchise?
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 Bambu's 2025 Franchise Disclosure Document, in the event that injunctive relief is entered against the franchisee, the franchisee's sole remedy is to seek dissolution of the injunctive relief, if warranted, upon a duly held hearing. This means that if a court orders an injunction against a Bambu franchisee, the franchisee's only recourse is to attempt to have the injunction lifted by demonstrating to the court that it is not justified.
Notably, the franchisee expressly waives all claims for damages resulting from the wrongful issuance of any such injunction. This waiver prevents the franchisee from suing Bambu for financial losses or other harm caused by an injunction, even if the injunction is later determined to have been wrongly issued.
However, the FDD also states that pursuant 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 clause appears to apply specifically to franchises operating in Minnesota, potentially offering additional protections compared to the standard agreement. Prospective franchisees should clarify with Bambu how these provisions interact and what specific rights they have in their state.