Who determines if a bond is required when Bombs Away seeks injunctive relief in Minnesota?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- The franchisee cannot consent to the franchisor obtaining injunctive relief.
The franchisor may seek injunctive relief.
See Minn.
Rules 2860.4400J.
Also, a court will determine if a bond is required.
Source: Item 22 — CONTRACTS (FDD pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, in Minnesota, a court will determine if a bond is required when Bombs Away seeks injunctive relief. This is outlined in the Minnesota Rider to the Franchise Agreement.
This means that if Bombs Away seeks a court order (injunctive relief) against a franchisee in Minnesota, the court, not Bombs Away, will decide whether Bombs Away needs to post a bond. A bond is a sum of money deposited with the court, which could be forfeited to the franchisee if the injunction is later found to have been wrongly issued or if the franchisee incurs damages as a result of the injunction.
This provision protects the franchisee by ensuring an impartial decision on the bond requirement. It prevents Bombs Away from unilaterally imposing a bond requirement, which could create a financial burden for the franchisee. This is particularly important in cases where the franchisee believes the injunctive relief sought by Bombs Away is unwarranted.