Under what circumstances can a party seek injunctive relief from a court of competent jurisdiction in California without first complying with sections 14.1 and 14.2 of the Bhc agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
e, this section 14.2 will be construed as independent of any other covenant or provision of this Agreement; provided, however, that if a court of competent jurisdiction determines that any of such provisions are unlawful in any way, the court is respectfully requested to modify or interpret such provisions to the minimum extent necessary to comply with the law.
14.3 Injunctive Relief.
Any party has the right in a situation where there is an imminent threat of harm to the legal rights of a party and damages would not be adequate relief to seek a temporary restraining order and temporary or preliminary injunctive relief from a court of competent jurisdiction in California, without the necessity of first complying with sections 14.1 and 14.2 above or posting any bond, and if bond is nevertheless required by a court of competent jurisdiction, the parties agree that the sum of $1,000 will be a sufficient bond. If an arbitration proceeding has already commenced pursuant to section 14.2 above when a party seeks injunctive relief, then the party seeking such injunctive relief agrees to contemporaneously submit the merits of its dispute to the arbitrator. The existence of a proceeding commenced under section 14.1 or 14.2 above will in no event abate or otherwise affect the ability of party to seek injunctive relief under this section 14.3. Master Franchisee acknowledges that its failure to comply fully with any of the terms of this Agreement respecting the obligat
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a party can seek a temporary restraining order and preliminary injunctive relief from a court of competent jurisdiction in California without first complying with sections 14.1 and 14.2 of the agreement if there is an imminent threat of harm to the legal rights of a party and damages would not be adequate relief.
In such cases, the party is not required to post a bond. However, if a bond is required by the court, the parties agree that $1,000 will be a sufficient bond. If an arbitration proceeding has already commenced under section 14.2 when a party seeks injunctive relief, the party seeking the relief must simultaneously submit the merits of the dispute to the arbitrator.
The existence of a proceeding commenced under sections 14.1 or 14.2 does not affect a party's ability to seek injunctive relief. Bhc's Master Franchisee acknowledges that failure to comply with obligations regarding examinations, audits, and the Marks could cause irreparable damage to Bhc or its affiliates, empowering Bhc or its affiliates to seek injunctive relief to protect the Marks. This covenant is independent, severable, and enforceable regardless of other rights or remedies available to any party.