In the event of a breach of the Buildingstars Franchise Agreement, is the other party entitled to injunctive relief?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Franchise Agreement, the other party is immediately entitled to injunctive relief. This includes a temporary restraining order, preliminary injunction, and specific performance. This right to injunctive relief is in addition to any other remedies available.
Notably, if Buildingstars seeks injunctive relief, it is not required to post a bond. This is a significant advantage for Buildingstars, as a bond is a form of security a party must provide to the court to cover potential damages to the other party if the injunction is later found to be wrongfully issued. The franchisee does not receive the same explicit waiver of a bond requirement if they seek injunctive relief.
This clause ensures that either party can quickly seek court intervention to prevent ongoing or potential harm resulting from a breach of the agreement. The availability of injunctive relief can be a powerful tool for enforcing the terms of the franchise agreement and protecting the interests of both Buildingstars and the franchisee.