Is Buildingstars required to post a bond if it seeks injunctive relief?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPT (FDD pages 43–217)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, Buildingstars is not required to post a bond if it seeks injunctive relief. This means that if Buildingstars believes a franchisee is violating the franchise agreement and seeks a court order to stop the franchisee's actions, Buildingstars does not have to provide a financial guarantee to cover potential damages to the franchisee if the injunction is later found to be unjustified. This is a significant advantage for Buildingstars, as posting a bond can be costly.
This provision is outlined in Item 23 of the FDD, which discusses various legal and contractual aspects of the franchise agreement. Specifically, it states that Buildingstars is entitled to injunctive relief without bond in the event of a breach or threatened breach of the agreement by the franchisee. This applies to situations where Buildingstars seeks to enforce the agreement through court orders.
For a prospective franchisee, this means that if Buildingstars seeks an injunction against them, Buildingstars does not have to put up a bond. This could potentially make it easier and less expensive for Buildingstars to obtain an injunction, which could have serious implications for the franchisee's business operations. Franchisees should be aware of this provision and understand the potential consequences of violating the franchise agreement.