Does the Beard Papas agreement require the company to post a bond when applying for injunctive relief?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
ation 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, Muginoho International, Inc., and other Beard Papa's 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, Muginoho International, Inc., to injunctive relief. You agree that we and/or our Franchisor, Muginoho International, Inc., may app
Source: Item 23 — RECEIPTS (FDD pages 58–275)
What This Means (2025 FDD)
According to the 2025 Beard Papas Franchise Disclosure Document, Beard Papas can generally apply for injunctive relief without posting a bond. The agreement stipulates that franchisees acknowledge that violations of the franchise agreement could cause irreparable harm to Beard Papas and its other franchisees.
However, if a court requires Beard Papas to file a bond despite the agreement's language, the agreement specifies that the bond amount will not exceed $1,000. The franchisee's sole remedy if an injunction is issued is to seek its dissolution if warranted after a hearing. The franchisee also waives all claims for damages resulting from a wrongfully issued injunction.
This arrangement favors Beard Papas, as it attempts to limit their financial exposure in the event of seeking injunctive relief against a franchisee. Prospective franchisees should be aware of this provision, understanding that while Beard Papas aims to avoid posting a bond, the maximum bond amount is capped at $1,000 if a court mandates it.