What claims do I waive against Beverly Anns Cookie for loss or damage?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
ich there is no adequate remedy at law. Therefore, you agree that any violation of this Agreement will entitle us to injunctive relief. You agree that we 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 requ
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, as part of the System Protection Agreement, you waive the right to claim damages if the company seeks an injunction against you for violating the agreement. Specifically, you agree that Beverly Anns Cookie can pursue injunctive relief without posting a bond (though with due notice), and your sole recourse if an injunction is issued is to seek its dissolution. You explicitly waive any claims for damages resulting from a wrongfully issued injunction. However, if a court insists on a bond, the parties agree it will not exceed $1,000.
This waiver means that if Beverly Anns Cookie believes you've breached the System Protection Agreement (for example, by disclosing confidential information or competing unfairly), they can ask a court to immediately stop you, even before a full trial. If the court grants the injunction and it later turns out to be unjustified, you cannot sue Beverly Anns Cookie for any financial losses you suffered as a result of the injunction.
This type of waiver is not uncommon in franchise agreements, particularly concerning protection of trade secrets and brand standards. It aims to protect the franchisor's interests by allowing quick action against potential damage. However, it places a significant risk on the franchisee, who could face business disruption without recourse for damages if the injunction proves unwarranted. A prospective Beverly Anns Cookie franchisee should carefully consider this clause and seek legal advice to understand the full implications before signing the agreement.