Does Bambu 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 Bambu's 2025 Franchise Disclosure Document, franchisees expressly waive claims for damages resulting from the wrongful issuance of an injunction. Specifically, the FDD states that in the event of a breach or threatened breach of the agreement, Bambu is authorized to seek injunctive relief. While the franchisee's sole remedy is the dissolution of the injunction if warranted, they explicitly waive the right to claim damages due to the injunction's wrongful issuance. Bambu may obtain injunctive relief without posting a bond exceeding $500, but upon providing due notice.
This waiver means that if a court issues an injunction against a Bambu franchisee, and it is later determined that the injunction was wrongly issued, the franchisee cannot sue Bambu for any financial losses they incurred as a result of the injunction. This could include lost profits, legal fees, or other expenses. The franchisee's only recourse is to have the injunction dissolved.
This type of waiver is not uncommon in franchise agreements. It is important for prospective Bambu franchisees to understand the implications of this waiver before signing the agreement. They should consider the potential risks and consult with an attorney to determine if the waiver is acceptable in their specific circumstances. The franchisee should carefully consider the potential financial impact of such a waiver, especially if their business is significantly disrupted by an injunction, even if later deemed wrongful.