If equitable relief is granted to Beverly Anns Cookie, what is the Franchise Owner's only remedy?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.3 Equitable Remedies. Owners acknowledge and agree that the covenants and obligations of the Owners relate to special, unique and extraordinary matters and that a violation of any of the terms of such covenants and obligations will cause us irreparable injury for which adequate remedies are not available at law. Therefore, Owners agree that we shall be entitled to an injunction, restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may deem necessary or appropriate to restrain Owners from committing any violation of the covenants and obligations contained in this Franchise Owner Agreement. If equitable relief is granted, Owners' only remedy will be the court's dissolution of the injunctive relief. If equitable relief was wrongfully issued, Owners expressly waive all claims for damages they incurred as a result of the wrongful issuance.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, if equitable relief, such as an injunction, is granted to Beverly Anns Cookie against a Franchise Owner, the Owner's sole remedy is the dissolution of that injunctive relief by the court. This means that if a court orders the Franchise Owner to take or cease certain actions to comply with the franchise agreement, the Owner's only recourse is to have that specific order lifted.
This clause significantly limits the Franchise Owner's ability to seek compensation for any damages they might incur as a result of the injunction, even if it's later determined that the injunction was wrongly issued. The Franchise Owner expressly waives all claims for damages resulting from the wrongful issuance of equitable relief. This is a substantial risk for franchisees, as they could face financial losses due to actions they were compelled to take or prevented from taking under the injunction, without any means of recovering those losses from Beverly Anns Cookie.
Such provisions are not uncommon in franchise agreements, as franchisors often seek to protect their brand standards and system uniformity through injunctive relief. However, the complete waiver of damage claims is a point of concern that prospective Beverly Anns Cookie franchisees should carefully consider. It is advisable to seek legal counsel to fully understand the implications of this clause and potentially negotiate for some limitation on the waiver of damage claims.