Is the Bang Cookies Franchisor required to post a bond to obtain injunctive relief?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
and (v) you will stop using the Confidential Information immediately at our request or demand. You will not use the Confidential Information for any purpose other than for the performance of your duties on behalf of us and in accordance with the scope of your work with us.
- 5. Reasonableness of Covenants and Restrictions. You agree that: the terms of this Agreement are reasonable and fair and that you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. You hereby waive any right to challenge the terms of this Agreement as being overly broad, unreasonable or otherwise unenforceable.
6. Breach. You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our franchisor Bang Cookies Franchise LLC, and other Bang Cookies franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of these covenants will entitle us or our Franchisor Bang Cookies Franchise LLC to injunctive relief. You agree that we and/or our Franchisor Bang Cookies Franchise LLC may apply for 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 the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, you agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Article are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
7. Miscellaneous.
- (a) If we hire an attorney or files suit against you because you have breached this Agreement and if we prevail in such lawsuit, you agree to pay the reasonable attorney fees and costs that we incur.
- (b) Each section of this Agreement, including each subsection and portion thereof, is severable. In the event that any section, subsection or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms reasonable in scope, duration and geographic area.
- (c) YOU ACKNOWLEDGE THAT THIS IS NOT AN EMPLOYMENT AGREEMENT.
- (d) YOU ACKNOWLEDGE AND AGREE THAT OUR FRANCHISOR, Bang Cookies Franchise LLC, IS NOT A PARTY TO THIS AGREEMENT BUT IS AN INTENDED THIRD PARTY BENEFICIARY OF THIS AGREEMENT.
IN WITNESS WHEREOF, each of the undersigned has executed this Agreement as of the date or dates set forth below.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, Bang Cookies generally does not have to post a bond to obtain injunctive relief. However, there are some exceptions.
Specifically, the franchise agreement states that Bang Cookies can seek injunctive relief without posting a bond in cases of franchisee breach or violation of intellectual property, brand protection, and non-competition covenants. The franchisee agrees that their failure to comply with these terms would cause irreparable harm to Bang Cookies and other franchisees. The franchisee's sole remedy, if an injunction is entered against them, is the dissolution of that injunction if warranted upon a hearing.
However, if a court requires Bang Cookies to file a bond despite the agreement, the franchise agreement stipulates that the bond amount will not exceed $1,000. This provides a limit to the financial burden on Bang Cookies should a bond be necessary.
This arrangement is generally favorable to Bang Cookies, as it reduces the upfront costs and potential delays associated with obtaining injunctive relief to protect its brand and system. Franchisees should be aware of these terms and understand the circumstances under which Bang Cookies might seek an injunction and the limited recourse available to them.