In the event of an injunction against a Beverly Anns Cookie franchisee, what is the franchisee's sole remedy?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
e substantial and irreparable damage to us and/or other Beverly Ann's Cookies franchisees for which 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, if a franchisee is subject to an injunction, their sole remedy is to seek the dissolution of that injunction. This means the franchisee's only recourse is to attempt to have the injunction removed if there is a hearing. The franchisee gives up any right to claim damages resulting from the injunction's issuance.
Beverly Anns Cookie can seek injunctive relief for any violation of the Franchise Agreement. The agreement states that the franchisor can pursue this relief without posting a bond, although they must provide due notice. However, if a court requires a bond, the parties agree that it will not exceed $1,000.
This clause has significant implications for potential franchisees. By agreeing to this, a franchisee waives the right to sue Beverly Anns Cookie for damages if an injunction is later found to be wrongful. The franchisee's financial losses could be substantial during the period the injunction is in place, making the dissolution of the injunction the only way to mitigate losses. This arrangement is not typical in all franchise agreements, as some may allow for damage claims in cases of wrongful injunctions, so prospective franchisees should carefully consider this provision and seek legal counsel.