What is the franchisee's sole remedy if injunctive relief is entered against them by Buona?
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, if a court issues injunctive relief against a franchisee, the franchisee's only recourse is to seek the dissolution of that injunction. This means the franchisee can attempt to have the court order reversed or canceled if they believe it was wrongly issued.
However, the franchisee expressly waives any right to claim damages resulting from the injunction's initial issuance, even if it is later determined that the injunction was not justified. This waiver is a significant limitation on the franchisee's rights, as they cannot seek financial compensation for any losses incurred due to the injunction, such as lost profits or legal expenses, regardless of whether the injunction was ultimately deemed improper.
Buona can obtain injunctive relief without posting a bond exceeding $1,000. This relatively low bond amount means that Buona faces limited financial risk if an injunction is later found to be unwarranted. The franchisee bears the primary risk of financial loss due to an injunction, highlighting the importance of carefully considering the potential for injunctive relief when evaluating the franchise agreement.