Under what circumstances is Batteries Plus Bulbs entitled to injunctive relief against a franchisee?
Batteries_Plus_Bulbs Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding Sections 19(A) and (B) above, Franchisee recognizes that a single franchisee's failure to comply with the terms of its agreement could cause irreparable damage to Franchisor and/or to some or all other Batteries Plus® franchisees. Therefore, if Franchisee breaches or threatens to breach any of the terms of this Agreement, Franchisor will be entitled to an injunction restraining such breach and/or a decree of specific performance, without showing or proving any actual damage, together with recovery of reasonable attorneys' fees and other costs incurred in obtaining such equitable relief, until such time as a final and binding determination is made by the arbitrators.
- D. Attorneys' Fees. The nonprevailing party will pay all costs, expenses and interest, including reasonable attorneys' fees, the prevailing party incurs in any action brought to enforce any provision of this Agreement or to enjoin any violation of this Agreement.
Source: Item 22 — Contracts (FDD page 80)
What This Means (2025 FDD)
According to Batteries Plus Bulbs' 2025 Franchise Disclosure Document, Batteries Plus Bulbs is entitled to injunctive relief if a franchisee breaches or threatens to breach any terms of the Franchise Agreement. This means Batteries Plus Bulbs can seek a court order to stop the franchisee from continuing the breaching behavior.
Injunctive relief allows Batteries Plus Bulbs to prevent potential irreparable damage to the brand and its other franchisees, without needing to prove actual financial damage. The franchisee may be compelled to specifically perform their obligations under the agreement. This remedy is available until arbitrators make a final determination on the matter.
Furthermore, Batteries Plus Bulbs is entitled to recover reasonable attorneys' fees and other costs incurred while obtaining the injunctive relief. The non-prevailing party in any action to enforce or enjoin a violation of the Franchise Agreement will be responsible for all associated costs, expenses, and interest, including reasonable attorneys' fees, incurred by the prevailing party.