Does the Bft franchise agreement allow a party to seek injunctive relief for threatened conduct that could damage its trademarks?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Party agrees that the other may obtain such injunctive relief in addition to such further or other relief as may be available at law or in equity.
The Parties agree that the Party seeking injunctive relief pursuant to this Section will not be required to post a bond to obtain injunctive relief and that the only remedy for a Party if an injunction is entered against it will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Nothing in this Section or any other provision of this Agreement shall be construed to prevent
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, both Bft and the franchisee can seek injunctive relief in addition to other legal or equitable remedies. This means that if either party engages in conduct that threatens to cause irreparable harm, such as trademark infringement or breach of contract, the other party can ask a court to order them to stop the behavior immediately.
The agreement specifies that the party seeking the injunction does not have to post a bond. Typically, a bond is required to protect the party being enjoined in case the injunction is later found to be unwarranted. Bft franchise agreement states that the only remedy for a party against whom an injunction is issued is the dissolution of the injunction if a hearing determines it is not justified, and all claims for damages due to the injunction are waived.
Specifically, the franchise agreement states that if a franchisee violates the terms of Article 13, which likely contains provisions related to protecting Bft's interests, Bft is entitled to preliminary and permanent injunctive relief and damages. This includes an accounting of all earnings, profits, and other benefits arising from the violation. The franchisee also agrees to waive any bond that may be required for the issuance of preliminary relief. This clause reinforces Bft's ability to quickly and effectively stop any actions by the franchisee that could harm the brand or system.
This ability to obtain injunctive relief is a significant protection for Bft, ensuring that it can swiftly address any actions by a franchisee that could damage its brand, system, or reputation. For a franchisee, this means they must be especially careful to adhere to the terms of the franchise agreement to avoid facing an injunction, which could halt their business operations.