Does the Buildingstars Franchise Agreement require proof of actual damage to obtain 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, either party is entitled to injunctive relief without needing to show or prove actual damages. This means Buildingstars can seek a court order to stop a franchisee from violating the agreement, even if Buildingstars hasn't yet suffered measurable financial harm.
This provision benefits Buildingstars by allowing them to quickly address potential violations of the agreement, such as a franchisee operating outside their territory or misusing confidential information, before significant damage occurs. It also states that if Buildingstars seeks injunctive relief, it is not required to post a bond.
For a prospective Buildingstars franchisee, this means they could face legal action and be compelled to comply with the Franchise Agreement even if the franchisor cannot demonstrate immediate financial losses. This underscores the importance of fully understanding and adhering to the terms of the agreement to avoid potential legal disputes and the associated costs.