In the event of a breach of the Buildingstars agreement, is Buildingstars entitled to injunctive relief?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
ion 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.
- D. Entire Agreement.
Source: Item 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is entitled to injunctive relief in the event of a breach or threatened breach of the Franchise Agreement by any party. This means Buildingstars can seek a court order to stop a franchisee from continuing the behavior that constitutes the breach. This right is in addition to any other remedies Buildingstars might have, such as monetary damages.
Moreover, Buildingstars is entitled to injunctive relief and orders of specific performance enforcing the provisions of the Agreement, if the franchisee actually or anticipates breaching the agreement. This entitlement is without the need for a bond, which is a security deposit often required by courts to cover potential damages to the defendant if the injunction is later found to be unjustified.
These provisions are significant for a prospective Buildingstars franchisee because they highlight the serious legal ramifications of failing to comply with the Franchise Agreement. Buildingstars has the ability to quickly seek court intervention to enforce the agreement, potentially halting the franchisee's operations or other activities deemed in violation. The franchisee may also be responsible for reimbursing Buildingstars for its legal costs, including attorney's fees, incurred in seeking enforcement of the agreement.