In seeking injunctive relief, what is the maximum bond amount Buona is required to post?
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 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, when seeking injunctive relief, Buona as the franchisor may be required to post a bond, but this bond will not exceed $1,000. This is under the condition that Buona provides due notice to the franchisee. The franchisee's sole recourse if an injunction is issued is to seek dissolution of the injunction if warranted after a hearing. The franchisee also waives any claims for damages resulting from the wrongful issuance of the injunction.
This clause outlines the conditions under which Buona can seek immediate court orders to prevent the franchisee from taking certain actions, such as violating the franchise agreement. The bond acts as a form of security, potentially compensating the franchisee if the injunction is later found to be unjustified. However, the franchisee agrees to limit their remedy to dissolving the injunction and waives rights to monetary damages.
In practical terms, this means a Buona franchisee has limited financial protection if an injunction is wrongly issued against them. While they can attempt to dissolve the injunction, they cannot sue Buona for financial losses incurred during the period the injunction was in effect. This arrangement is somewhat favorable to Buona, as it caps their potential liability at a relatively low amount ($1,000) while still allowing them to quickly enforce the franchise agreement through injunctive relief.
Franchise agreements often contain clauses addressing injunctive relief, as it is a common legal remedy for enforcing contractual obligations. The specific terms, including bond amounts and limitations on remedies, can vary significantly. Prospective franchisees should carefully review these clauses to understand their rights and obligations in the event of a dispute leading to injunctive relief.