Is Buona required to post a bond when seeking injunctive relief?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
If we obtain an injunction or order of specific performance, you agree to pay us an amount equal to the total of our costs of obtaining it, including, without limitation, reasonable attorneys' fees, expert witness fees, costs of investigation and proof of facts, court costs, other litigation expenses and travel and living expenses, and any damages we incur as a result of the breach of any such provision.
You further agree to waive any claims for damages in the event there is a later determination that an injunction or specific performance order was issued improperly.
- 12.3 Arbitration.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona is generally not required to post a bond when seeking injunctive relief, although this can vary by jurisdiction. Specifically, in most cases, Buona is entitled, after providing appropriate notice, to seek temporary and permanent injunctions and orders of specific performance without needing to post a bond. This applies to enforcing provisions related to the use of their marks, non-disclosure and non-competition obligations, preventing violations of laws or actions that endanger the public or impair goodwill, preventing irreparable harm to their interests, enforcing obligations upon termination or expiration of the agreement, and prohibiting unauthorized assignments.
However, the FDD also states that in certain circumstances, such as in Minnesota, the court will determine if a bond will be posted. This indicates that the standard provision of not requiring a bond may not be applicable in all states due to specific state laws.
For prospective franchisees, this means that in most jurisdictions, Buona can quickly seek injunctive relief to protect its interests without the upfront cost of posting a bond. However, franchisees should be aware of the specific laws in their state, as these may override the standard provision and require Buona to post a bond. It is advisable for potential franchisees to consult with a legal professional to understand the implications of these provisions in their specific location.