Does the Buona franchise agreement allow for injunctive relief, notwithstanding the arbitration provisions?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
h waive their rights to a 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), but upon due notice, and Franchisee's sole remedy in the event of the entry of any injunctive relief will be the dissolution of the inj
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to the 2025 Buona Franchise Disclosure Document, both Buona and the franchisee (or developer) have the right to seek injunctive relief from a court of competent jurisdiction, even if there are arbitration provisions in place. This means that either party can go to court to ask a judge to order the other party to do something or stop doing something, regardless of whether they have agreed to resolve disputes through arbitration.
Specifically, Buona can seek temporary and permanent injunctions and orders of specific performance to enforce the franchisee's obligations regarding the use of Buona's marks, non-disclosure and non-competition agreements, and to prevent actions that violate laws, endanger the public, or harm the goodwill associated with the Buona brand. The franchisee agrees to pay Buona's costs for obtaining such an injunction, including attorney's fees and other expenses, and waives any claims for damages if the injunction is later determined to have been issued improperly.
Buona may obtain injunctive relief without posting a bond exceeding $1,000, provided they give due notice. The franchisee's sole remedy if an injunction is issued is to seek its dissolution. However, the franchisee waives all claims for damages resulting from the wrongful issuance of any injunction. Any action will be brought as provided in the relevant Article of the franchise agreement, and the prevailing party will be entitled to costs and attorneys' fees. This is a fairly common practice in franchising, as it allows a franchisor to quickly address actions by a franchisee that could cause immediate and irreparable harm to the brand.