Does the Buildingstars Franchise Agreement require a showing or proving 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 Franchise Agreement, either party 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, even if Buildingstars hasn't yet suffered any financial loss. This also applies to the franchisee if Buildingstars breaches the agreement.
This provision also states that seeking injunctive relief does not prevent either party from pursuing other available remedies. Additionally, 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.
This clause is generally favorable for Buildingstars, as it streamlines the process for obtaining injunctive relief by removing the need to demonstrate actual damages and post a bond. However, it also benefits the franchisee, as the same conditions apply to them if Buildingstars breaches the agreement. Prospective franchisees should understand the implications of this clause, as it could lead to quicker legal action in the event of a dispute.