Does Buona have the right to seek injunctive relief from a court, despite 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 injunctive relief, if warranted, upon hearing duly had; however, all claims for damages by reason of the wrongful issuance of any such injunction are expressly waived by Franchisee. Any such action will be brought as provided in this Article and the prevailing party shall be entitled to its costs and attorneys' fees.
- 24.8 Limitations on Actions. Except for payments owed by one party to the other, and unless prohibited by applicable law, any and all claims and actions arising out of or relating to this Agreement (including, but not limited to, the offer and sale of this franchise), the relationship of Franchisee and Franchisor, or Franchisee's operation of the Franchised Business, brought by Franchisee must be commenced within one (1) year from the occurrence of the events giving rise to such claims or action, or such claim or action shall be barred.
- 24.9 DAMAGES. FRANCHISOR AND FRANCHISEE HEREBY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHT TO OR CLAIM OF ANY CONSEQUENTIAL, PUNITIVE, OR EXEMPLARY DAMAGES AGAINST THE OTHER, AND AGREE THAT IN THE EVENT OF A DISPUTE BETWEEN THEM EACH SHALL BE LIMITED TO THE RECOVERY OF ANY ACTUAL DAMAGES SUSTAINED BY IT.
- 24.10 Costs and Attorney's Fees.
Source: Item 23 — RECEIPTS (FDD pages 78–356)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, both Buona and the franchisee have the right to seek injunctive relief from a court of competent jurisdiction, even with the existence of arbitration provisions. This means that either party can go to court to request an order that compels the other party to either do something or stop doing something, along with any related damages.
Buona can seek temporary and permanent injunctions and orders of specific performance in certain situations without first going through mediation. These situations include enforcing provisions related to the franchisee's use of Buona's marks, non-disclosure and non-competition obligations, or to stop actions that violate laws, endanger the public, or harm Buona's goodwill or brand. The franchisee agrees to waive any claims for damages if an injunction or specific performance order is later found to have been issued improperly.
The franchisee agrees that Buona can obtain injunctive relief without needing to post a bond exceeding $1,000, provided they give due notice. The franchisee's only recourse if an injunction is issued is to seek its dissolution if warranted, but they waive any claims for damages resulting from the injunction's issuance. Any such legal action will follow the guidelines outlined in the agreement, and the winning party will be entitled to recover their costs and attorney's fees.
This is a fairly standard clause in franchise agreements, as it allows a franchisor like Buona to quickly address situations where a franchisee is violating the agreement in a way that could cause immediate and irreparable harm to the brand. However, the franchisee does waive their right to claim damages if the injunction is later deemed wrongful, which is a point to consider carefully.