In what jurisdiction can Bananas Smoothies Frozen Yogurt obtain injunctive relief against the developer?
Bananas_Smoothies_Frozen_Yogurt Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Injunctive Relief**.** Franchisor may obtain in any court of competent jurisdiction any injunctive relief, including temporary restraining orders and preliminary injunctions, against conduct or threatened conduct for which no adequate remedy at law may be available or which may cause it irreparable harm. Franchisor may have such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and Developer's sole remedy in the event of the entry of such 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). Developer and each of Developer's owners acknowledges that any violation of Section 8,9,10,11 and 13 would result in irreparable injury to Franchisor for which no adequate remedy at law may be available. Accordingly, Developer and each of its owners consent to the issuance of an injunction prohibiting any conduct in violation of any of those Sections and agrees that the existence of any claim Developer or any of its owners may have against Franchisor, whether or not arising from this Agreement, shall not constitute a defense to the enforcement of any of those Sections.
Source: Item 23 — RECEIPT (FDD pages 58–231)
What This Means (2025 FDD)
According to the 2025 Bananas Smoothies Frozen Yogurt FDD, Everything Yogurt Brands, LLC, the franchisor of Bananas Smoothies Frozen Yogurt, can seek injunctive relief against a developer in any court of competent jurisdiction. This means Bananas Smoothies Frozen Yogurt is not limited to a specific geographic location when pursuing legal action to prevent certain actions by the developer that could cause irreparable harm. Injunctive relief includes temporary restraining orders and preliminary injunctions.
This provision in the Area Development Agreement allows Bananas Smoothies Frozen Yogurt to act swiftly to protect its interests if a developer engages in conduct that violates the agreement. For example, this might include actions related to competitive restrictions or unauthorized disclosure of confidential information. The developer consents to the issuance of an injunction prohibiting any conduct violating specific sections of the agreement and agrees that any claims against Bananas Smoothies Frozen Yogurt will not be a defense to the enforcement of these sections.
The FDD states that the developer's sole remedy if an injunction is issued is its dissolution, if warranted after a hearing, and the developer waives all claims for damages resulting from the wrongful issuance of any injunction. This clause underscores the importance of adhering to the terms of the Area Development Agreement and the potential legal ramifications of non-compliance for developers of Bananas Smoothies Frozen Yogurt franchises.