Does the Buildingstars Franchise Agreement require a showing of actual damages to obtain injunctive relief?

According to Buildingstars's 2025 Franchise Disclosure Document, in the event of a breach or threatened breach of the Franchise Agreement, Buildingstars is entitled to injunctive relief without having to show or prove any actual damages. This means that Buildingstars can seek a court order to stop a franchisee from violating the agreement without needing to demonstrate that it has suffered financial harm. This right is in addition to any other remedies available to Buildingstars.

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, which can be forfeited if the injunction is later found to have been wrongly issued and caused damage to the other party. The absence of a bond requirement favors Buildingstars, as it reduces the financial risk associated with seeking injunctive relief.

This clause is significant for prospective franchisees because it highlights the ease with which Buildingstars can obtain a court order against them for violating the Franchise Agreement. Franchisees should be aware that they could be subject to injunctive relief even if Buildingstars cannot prove actual financial damages. This could include actions such as enforcing non-compete clauses or protecting confidential information. The franchisee should seek legal counsel to fully understand the implications of this provision.