Does Burneys Sweets More have the right to seek preliminary injunctive relief from a court?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee understands that by agreeing to arbitrate it gives up jury and appeal and other rights it might have in court.
- (c) Injunctive Relief.
Notwithstanding the provisions of Section 21(b) above, Franchisee agrees that Franchisor, at its option, will have the right to seek preliminary injunctive relief from a court of competent jurisdiction, to restrain any conduct by Franchisee, the Owners, or the guarantors that (i) could materially damage the goodwill associated with the System, the Marks, and the Chain (including but not limited to conduct related to trademark or other intellectual property infringement), (ii) that involves the disclosure or use of Franchisor's Confidential Information, including but not limited to the Customer List and Franchised Business Data, or (iii) that relates to Franchisee's, the Owners', or a managerial employee's covenants against unfair competition or solicitation, provided that if Franchisee counters, as Franchisee may, by initiating arbitration, Franchisor agrees to arbitrate the entire dispute thereafter except preliminary injunctive relief (and permanent injunctive relief also, if Franchisee will not agree that the preliminary injunction shall remain effective indefinitely until the arbitrator shall dissolve it), leaving the court action pending, if it chooses, to facilitate enforcement.
Franchisee agrees that Franchisor will not be required to post a bond to obtain any injunctive relief with respect to use of the Marks.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Burneys Sweets More's 2025 Franchise Disclosure Document, Burneys Sweets More has the right to seek preliminary injunctive relief from a court of competent jurisdiction. This allows Burneys Sweets More to take immediate legal action to stop a franchisee, their owners, or guarantors from engaging in certain behaviors that could harm the franchise.
Specifically, Burneys Sweets More can seek this relief to prevent actions that (1) could materially damage the goodwill associated with the Burneys Sweets More system, marks, and chain, including trademark or intellectual property infringement, (2) involve the disclosure or use of Burneys Sweets More's confidential information, such as customer lists and franchised business data, or (3) relate to the franchisee's, owners', or a managerial employee's covenants against unfair competition or solicitation.
However, if the franchisee initiates arbitration to counter the preliminary injunctive relief, Burneys Sweets More agrees to arbitrate the entire dispute, except for the preliminary injunctive relief itself and potentially permanent injunctive relief if the franchisee does not agree to keep the preliminary injunction in effect until the arbitrator makes a decision. The court action can remain pending to help with enforcement. Burneys Sweets More is not required to post a bond to obtain injunctive relief related to the use of its marks.