In the event of a breach of the Buildingstars franchise agreement, is a party entitled to injunctive relief?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
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.
- D. Entire Agreement. This Agreement and all other written agreements related to this Agreement and expressly referenced in this Agreement, represent the entire understanding and agreement between the parties with respect to the subject matter of this Agreement, and supersedes all other negotiations, understandings and representations (if any) made by and between the parties. No representations, inducements, promises or agreements, oral or otherwise, if any, not embodied in this Agreement shall be of any force and effect; provided, however, that nothing in this or any related agreement is intended to disclaim BUILDINGSTARS' representations made in the franchise disclosure
document that was furnished to FRANCHISEE in connection with the offering to operate the Business. No amendment to this Agreement is binding unless executed in writing by both parties.
- E.
Representative Capacity.
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 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 the injunction to show or prove actual damages. Buildingstars is not required to post a bond if it seeks injunctive relief.
This clause means that both Buildingstars and the franchisee can seek court orders to stop the other party from violating the agreement. Injunctive relief is a powerful tool because it can prevent ongoing or potential harm before it escalates. The waiver of the bond requirement for Buildingstars provides them with a streamlined process to obtain injunctive relief, as they do not have to set aside funds that could be forfeited if the injunction is later deemed unwarranted.
For a prospective Buildingstars franchisee, this provision offers a degree of protection, ensuring that Buildingstars cannot breach the agreement without facing potential immediate legal action. However, it also means the franchisee is subject to the same standard. It is important to understand the circumstances under which a breach could occur and the potential consequences of such actions. Franchisees should consult with legal counsel to fully understand their rights and obligations under the franchise agreement and the implications of this injunctive relief clause.