If an injunction is entered against a Bang Cookies Franchisee, what is their only remedy?
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
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, if a franchisee violates the terms of the franchise agreement, particularly the restrictive covenants and obligations, Bang Cookies can seek injunctive relief. This means Bang Cookies can ask a court to order the franchisee to stop the violating behavior.
The document specifies that the franchisee's sole remedy, if such an injunction is entered against them, is to pursue the dissolution of the injunction through a hearing. The franchisee expressly waives any claims for damages resulting from the injunction's issuance. This means the franchisee cannot sue Bang Cookies for financial losses incurred because of the injunction, even if the injunction is later found to be wrongful.
Furthermore, if a court requires Bang Cookies to post a bond for the injunction, the franchisee agrees that the bond amount will not exceed $1,000. This limitation on the bond amount could be a disadvantage for the franchisee, as it may not fully cover potential losses if the injunction is later deemed unjustified. This clause highlights the importance of carefully adhering to the franchise agreement to avoid actions that could lead to injunctive relief.