Does the Bft franchise agreement prevent a party from seeking injunctive relief for trademark infringement?
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).
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, the franchise agreement does not prevent either party from seeking injunctive relief. The agreement explicitly states that both parties can obtain injunctive relief in addition to any other legal or equitable remedies available. This means that Bft franchisees and the franchisor can seek court orders to stop certain actions, such as trademark infringement, that could cause immediate and irreparable harm.
Furthermore, the Bft franchise agreement specifies that the party seeking injunctive relief is not required to post a bond. A bond is a sum of money a court may require to be deposited to cover potential damages to the opposing party if the injunction is later found to be unjustified. The agreement also clarifies that the only recourse for a party against whom an injunction is issued is to seek the dissolution of the injunction itself, and all claims for damages resulting from the injunction are expressly waived.
This arrangement benefits both Bft and its franchisees by streamlining the process of obtaining urgent relief in situations like trademark infringement. By waiving the bond requirement and limiting remedies to the dissolution of the injunction, the agreement aims to make injunctive relief more accessible and faster to obtain, which can be crucial in protecting brand integrity and market position. However, franchisees should be aware that they are also waiving their right to claim damages if an injunction is wrongly issued against them, which is a potential risk to consider.