What specific actions by a Buona developer can lead to injunctive relief?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
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 BUONA franchises; (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.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, Buona can seek injunctive relief against a developer for several specific actions. These include actions relating to the use of Buona's Marks, non-disclosure, and non-competition obligations.
Specifically, Buona can pursue injunctive relief to prohibit any action or omission by the developer or its owners that violates any applicable law, ordinance, or regulation, poses a danger to the public, or impairs the goodwill associated with Buona's Marks or franchises. Buona may also seek injunctive relief to prevent any other irreparable harm to their interests, to enforce the developer's obligations upon termination or expiration of the Development Agreement, and to prohibit an assignment or attempted assignment of any interest in the Development Agreement or the developer in violation of the agreement's provisions.
It is important to note that Buona is entitled to seek these injunctions without being required to post a bond, provided they give the developer appropriate notice. If Buona obtains an injunction or order of specific performance, the developer agrees to pay Buona's costs of obtaining it, including attorneys' fees, expert witness fees, investigation costs, court costs, and other litigation expenses. The developer also waives any claims for damages if the injunction or specific performance order is later determined to have been issued improperly. These stipulations highlight the importance of adhering to the Development Agreement to avoid potential legal action and financial burdens.