In the event of a breach of the agreement by the franchisee, is Beef O Bradys entitled to injunctive relief?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Injunctive Relief. You and we agree that the breach of this Agreement will result in irreparable harm to us or the Franchisor, and that no monetary award can fully compensate us or the Franchisor if you violate it. Thus, if you breach this Agreement, you agree that we will be entitled to an injunction restraining you from any further breach. Such injunctive relief may be obtained without bond, but upon due notice, in addition to such other and further remedies or relief as may be available to us or the Franchisor at equity or law.
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- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys's 2025 Franchise Disclosure Document, both the franchisee and Beef O Bradys acknowledge that breaching the Franchise Agreement could cause irreparable harm to Beef O Bradys or the Franchisor. Because monetary compensation might not fully cover the damages, Beef O Bradys is entitled to seek an injunction against the franchisee to prevent further breaches. This means Beef O Bradys can ask a court to order the franchisee to stop the actions that violate the agreement.
The agreement states that this injunctive relief may be obtained without a bond, provided due notice is given. This suggests that Beef O Bradys may not have to provide a financial guarantee to cover the franchisee's potential losses if the injunction is later found to be unjustified. However, in Minnesota, a court will determine if a bond is required.
This right to seek injunctive relief is in addition to any other remedies or relief available to Beef O Bradys or the Franchisor under law or equity. This means that Beef O Bradys can pursue other legal options, such as seeking monetary damages, in addition to obtaining an injunction. This clause strengthens Beef O Bradys's position in enforcing the Franchise Agreement and protecting its brand and system standards.