Can Buildingstars seek a preliminary injunction in the event of a breach of the Franchise Agreement?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
XVI. MISCELLANEOUS PROVISIONS
- 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' 2025 Franchise Disclosure Document, Buildingstars is entitled to injunctive relief in the event of a breach of the Franchise Agreement. Specifically, Buildingstars can seek a temporary restraining order, preliminary injunction, and specific performance. This entitlement applies if the franchisee actually breaches the agreement or if a breach is anticipated.
This means that Buildingstars can take immediate legal action to prevent a franchisee from violating the terms of the agreement. This is a significant protection for Buildingstars, as it allows them to quickly address potential damage to their brand or business operations. The FDD states that Buildingstars is not required to post a bond when seeking injunctive relief.
This clause is fairly standard in franchise agreements, as it allows franchisors to protect their brand standards, trade secrets, and customer relationships. For a prospective Buildingstars franchisee, this highlights the importance of adhering to the Franchise Agreement. Any deviation from the agreement could result in immediate legal action, including a court order to cease certain activities.