In what situations can a party seek injunctive or other equitable relief against actual or threatened conduct according to the Bft franchise agreement?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement, including the provisions of Sections 12.B through 12.D, bars a Party's right to seek and obtain in any court of competent jurisdiction injunctive or other equitable relief against actual or threatened conduct that it believes is likely to cause loss or damage to its trademarks (including the Marks), its proprietary
information, or its systems (including the System), in each case, under customary equity rules, including applicable rules for obtaining restraining orders and injunctions. 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 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 57–66)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, both Bft and the franchisee have the right to seek injunctive or other equitable relief in court to prevent potential harm. Specifically, either party can pursue this type of relief against conduct that is believed to likely cause loss or damage to Bft's trademarks, proprietary information, or its systems, including the System. This right exists regardless of other dispute resolution procedures outlined in the agreement.
This provision allows Bft to protect its brand and operational integrity, while also allowing the franchisee to protect their rights. Injunctive relief is a legal remedy where a court orders a party to stop engaging in a specific action. Equitable relief is a broader term encompassing various non-monetary remedies, such as specific performance or rescission of a contract.
Bft specifies that the party seeking injunctive relief will generally not be required to post a bond. Also, the only remedy for a party against whom an injunction is entered is the dissolution of that injunction, if warranted upon due hearing, as all claims for damages by injunction are expressly waived. This means that if a party is subject to an injunction, their recourse is limited to challenging the injunction itself, and they cannot seek monetary damages as a result of the injunction.