Does Buona have the right to seek injunctive relief from a court of competent jurisdiction?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
bjection they may have to the personal jurisdiction of or venue in the state and federal courts of Cook County, Illinois or to arbitration in Cook County, Illinois pursuant to this Article XXIV. Franchisor, Franchisor's Affiliates, Franchisee and Franchisee's Affiliates each 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 Buona's 2025 Franchise Disclosure Document, both Buona and the franchisee (or developer) have the right to seek injunctive relief from a court of competent jurisdiction in a proper case, notwithstanding any arbitration provisions. This means that even if disputes are generally subject to arbitration, either party can go to court to seek an injunction, which is a court order requiring someone to do or stop doing something.
For Buona, this right is particularly important to protect its brand, trademarks, and confidential information. The franchisee agrees that Buona can obtain injunctive relief without posting a bond exceeding $1,000, provided due notice is given. The franchisee's sole remedy if an injunction is issued is to seek its dissolution if warranted after a hearing. However, the franchisee waives all claims for damages resulting from the wrongful issuance of such an injunction.
Buona also has the right to seek temporary and permanent injunctions and orders of specific performance to enforce provisions related to the use of its marks, non-disclosure and non-competition obligations, and to prevent actions that violate laws, endanger the public, or impair the goodwill associated with the Buona brand. If Buona obtains such an injunction or order, the franchisee agrees to pay Buona's costs, including attorneys' fees, expert witness fees, investigation costs, court costs, and other litigation expenses.
This is a fairly standard clause in franchise agreements, as franchisors need to be able to quickly stop franchisees from actions that could harm the brand. The waiver of consequential, punitive, or exemplary damages and the limitation to actual damages are also common in franchise agreements. The franchisee should be aware of these limitations and understand the circumstances under which Buona can seek injunctive relief and the potential financial implications.