Does the Buildingstars agreement state that a party is entitled to injunctive relief immediately upon breach?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
XVI. MISCELLANEOUS PROVISIONS
- A. Waiver. No waiver by BUILDINGSTARS of any default of the FRANCHISEE shall constitute a waiver of any other default and shall not preclude BUILDINGSTARS from thereafter requiring strict compliance with this Agreement.
- B. Severability. Should any provision of this Agreement be construed or declared invalid, such decision shall not affect the validity of any remaining portion which shall remain in full force and effect as if this Agreement had been executed with such invalid portion eliminated. If any restriction contained in this Agreement is deemed too broad to be capable of enforcement, a court of competent jurisdiction is hereby authorized to modify or limit such restriction to the extent necessary to permit its enforcement. All covenants contained in this Agreement, including but not limited to those relating to non-solicitation and non-competition shall be interpreted and applied consistent with the requirements of reasonableness and equity.
- C. Injunctive Relief. In the event of any breach or threatened breach of this Agreement by any party, the other party shall immediately be entitled to injunctive relief, in addition to any other remedies available to it, (including a temporary restraining order, preliminary injunction and specific performance) without showing or proving any actual damage sustained and shall not thereby be deemed to have elected its only remedy to the exclusion of others. If BUILDINGSTARS seeks injunctive relief, it shall not be required to post a bond.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, in the event of a breach or threatened breach of the agreement by either party, the other party is immediately entitled to injunctive relief. This includes remedies such as a temporary restraining order, preliminary injunction, and specific performance. This entitlement is in addition to any other remedies available and does not require the party seeking relief to demonstrate actual damages. Furthermore, if Buildingstars seeks injunctive relief, it is not required to post a bond.
This provision means that Buildingstars franchisees and Buildingstars itself have the right to seek immediate court intervention to stop any actions that violate the franchise agreement. Injunctive relief can be a powerful tool to quickly address breaches such as non-compliance with brand standards, unauthorized competition, or disclosure of confidential information. The waiver of the bond requirement for Buildingstars provides a cost-saving benefit to the franchisor.
For a prospective franchisee, this clause highlights the importance of adhering to the franchise agreement. Failure to comply can lead to immediate legal action. While the franchisee also has the right to seek injunctive relief against Buildingstars, the practical reality is that Buildingstars is more likely to initiate such actions given its resources and the need to protect its brand and system. Franchisees should carefully review the franchise agreement and seek legal counsel to fully understand their obligations and potential liabilities.
This type of injunctive relief clause is common in franchise agreements, as it allows franchisors to protect their brand standards, trade secrets, and customer relationships. However, the specific terms, such as the waiver of a bond, can vary. Franchisees should be aware of these provisions and factor them into their assessment of the franchise opportunity.