Does the Bft franchise agreement require a party seeking injunctive relief to post a bond?
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, neither party is required to post a bond when seeking injunctive relief. The agreement states that the only recourse for a party against whom an injunction is issued is to seek the dissolution of the injunction itself. All claims for damages resulting from the injunction are expressly waived. This applies to both Bft and the franchisee.
This waiver of bond requirements and damage claims related to injunctions is significant. Typically, a party seeking an injunction might be required to post a bond to cover potential damages to the other party if the injunction is later found to be unwarranted. By waiving this requirement, the Bft franchise agreement streamlines the process for obtaining injunctive relief, potentially making it easier and faster for either party to enforce the agreement's terms.
However, franchisees should be aware that this also means they cannot seek damages if an injunction is wrongly issued against them, limiting their remedies to dissolving the injunction. This could have financial implications if the injunction causes business disruption or losses. Franchisees should carefully consider this provision and its potential impact on their rights and remedies under the franchise agreement.