Does a Bft franchisee have to waive any bond that may be required in connection with preliminary relief for violations of Article 13?

According to Bft's 2025 Franchise Disclosure Document, a franchisee agrees to waive any bond that may be required or imposed in connection with the issuance of any preliminary or provisional relief related to violations of Article 13. Article 13 pertains to covenants not to compete. This means that if Bft seeks a preliminary injunction against a franchisee for violating the non-compete agreement, the franchisee waives the right to require Bft to post a bond.

Typically, a bond is required to protect the franchisee in case the injunction is later found to be wrongfully issued. By waiving this bond, the franchisee is giving up some financial protection. If the court grants a preliminary injunction against the Bft franchisee, and it is later determined that the injunction was not justified, the franchisee will not be able to recover losses incurred as a result of the injunction from a bond.

This waiver is significant because it shifts the risk entirely to the franchisee. If a franchisee violates the non-compete agreement, Bft can seek immediate injunctive relief without having to put up a bond. This could create a financial risk for the franchisee if they are wrongly prevented from operating a business, even temporarily. Franchisees should carefully consider the implications of this waiver and consult with legal counsel to understand their rights and obligations under Article 13.