In the event of injunctive relief, what is the Buona franchisee's sole remedy?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
trial by jury.
- 24.6 Cumulative Remedies. No right or remedy herein conferred upon or reserved to Franchisor is exclusive of any other right or remedy herein, or by law or equity provided or permitted; but each shall be cumulative of any other right or remedy provided in this Agreement.
- 24.7 Injunctive Relief. Notwithstanding the above arbitration provisions, Franchisor and Franchisee will each have the right in a proper case to seek injunctive relief and any damages incidental thereto from a court of competent jurisdiction. Franchisee agrees that Franchisor may obtain this injunctive relief, without posting a bond or bonds in excess of a total of One Thousand Dollars ($1,000.00)
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, in the event that an injunction is issued against a franchisee, their sole remedy is to seek the dissolution of the injunctive relief, if warranted. This means that if a court orders a Buona franchisee to stop doing something (injunctive relief), the franchisee's only recourse is to argue that the injunction should be lifted.
Buona can obtain injunctive relief without posting a bond exceeding $1,000, provided they give due notice. However, the franchisee explicitly waives the right to claim damages resulting from the wrongful issuance of such an injunction. This is a significant point for prospective franchisees, as it limits their ability to recover losses if an injunction is later found to be unjustified.
This arrangement is not uncommon in franchising, where franchisors seek to protect their brand standards and intellectual property. However, the waiver of damage claims is a notable restriction. A prospective Buona franchisee should carefully consider this provision and seek legal counsel to understand the potential implications before signing the franchise agreement.