Does the Buildingstars franchise agreement require a showing of actual damage to obtain 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 the 2025 Buildingstars Franchise Disclosure Document, in the event of a breach or threatened breach of the agreement, either party is entitled to injunctive relief without having 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 financial harm. This could include a temporary restraining order, preliminary injunction, and specific performance.
This provision is favorable to Buildingstars, as it lowers the bar for obtaining injunctive relief. Typically, a party seeking an injunction must demonstrate that they will suffer irreparable harm if the injunction is not granted. However, under this clause, Buildingstars does not need to demonstrate actual damage.
Furthermore, if Buildingstars seeks injunctive relief, it is not required to post a bond. A bond is a sum of money that a party seeking an injunction must deposit with the court to cover any damages the other party might suffer if the injunction is later found to be wrongfully issued. The fact that Buildingstars is not required to post a bond further reduces the risk to Buildingstars when seeking injunctive relief.