Does Buona require Franchisor to post a bond when seeking injunctive relief?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
/or mediation shall not be disclosed to or shared with any third party except those parties whose presence is necessary to facilitate the mediation process. The parties agree not to make copies of any such documents, and to return them to the other party upon the conclusion of the mediation. Each party agrees and acknowledges that no statements made in, or evidence specifically prepared for mediation shall be admissible for any purpose in any subsequent proceedings. Notwithstanding the foregoing, Franchisor shall have no obligation to mediate claims that are the subject of Paragraph 12.2 herein.
- 12.2 Specific Performance; Injunctive Relief**.** Provided we give you the appropriate notice, we will be entitled, without being required to post a bond, to seek the entry of temporary and permanent injunctions and orders of specific performance to: (i) enforce the provisions of this Agreement relating to your use of the Marks and the non-disclosure and non-competition obligations under this Agreement; (ii) prohibit any act or omission by Developer or its Owners that constitutes a violation of any applicable law, ordinance or regulation, constitutes a danger to the public, or may impair the goodwill associated with the Marks or the Franchised Restaurants; (iii) prevent any other irreparable harm to our interests; (iv) enforce your obligations upon termination or expiration of this Agreement; and (v) prohibit an assignment or attempted assignment of any interest in this Agreement or Developer in violation of the applicable provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the franchisor's obligation to post a bond when seeking injunctive relief depends on the specific clause within the franchise agreement.
Specifically, under Section 12.2, Buona is entitled to seek temporary and permanent injunctions and orders of specific performance without being required to post a bond, provided they give appropriate notice. This applies to enforcing provisions related to the use of marks, non-disclosure and non-competition obligations, preventing violations of laws or actions that may harm the goodwill associated with the Buona brand, preventing irreparable harm to their interests, enforcing obligations upon termination or expiration of the agreement, and prohibiting unauthorized assignments.
However, Section 24.7 states that Buona may obtain injunctive relief without posting a bond or bonds in excess of $1,000, provided due notice is given. The franchisee's sole remedy in the event of injunctive relief is the dissolution of the injunction if warranted, and the franchisee expressly waives all claims for damages resulting from the wrongful issuance of any injunction. It is important to note that in Minnesota, Section 24.7 of the Franchise Agreement is amended to provide that the court will determine if a bond will be posted.