Does the Bananas Smoothies Frozen Yogurt agreement require a bond for injunctive relief?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
undersigned, jointly and severally, for injunctive relief, including temporary restraining orders and preliminary injunctions in any court of competent jurisdiction, without any bond. Legal action for injunctive relief may be commenced against any conduct or threatened conduct for which no adequate remedy at law may be available or which may cause irreparable harm to EYB. EYB shall be entitled to such relief in addition to such further and other relief as may be available at equity or law and the undersigned's sole remedy in the event of the entry of injunction, shall be its dissolution, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived).
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, the agreement allows the company to seek injunctive relief without a bond. Specifically, Bananas Smoothies Frozen Yogurt can pursue legal action for injunctive relief, including temporary restraining orders and preliminary injunctions, in any court of competent jurisdiction, without being required to post a bond. This provision applies to conduct or threatened conduct that lacks an adequate remedy at law or may cause irreparable harm to EYB.
This means that if Bananas Smoothies Frozen Yogurt believes a franchisee is engaging in activities that could harm the brand or violate the franchise agreement, the company can seek immediate court intervention to stop the franchisee without having to put up a financial guarantee (bond). This is a significant advantage for the franchisor, as it lowers the barrier to obtaining injunctive relief.
Furthermore, the franchisee's sole remedy if an injunction is issued is to seek its dissolution if warranted after a hearing. The franchisee expressly waives any claims for damages resulting from the wrongful issuance of such an injunction. This clause further protects Bananas Smoothies Frozen Yogurt from potential legal action by the franchisee related to the injunction.
This arrangement is not uncommon in franchising, as franchisors often seek to protect their brand standards and intellectual property. However, prospective Bananas Smoothies Frozen Yogurt franchisees should carefully consider this provision and understand the potential implications of injunctive relief sought by the franchisor.