Under what circumstances can Burneys Sweets More seek preliminary injunctive relief?
Burneys_Sweets_More Franchise · 2025 FDDAnswer from 2025 FDD Document
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 under specific circumstances. These circumstances include when a franchisee, its owners, or guarantors engage in conduct that could materially damage the goodwill associated with the Burneys Sweets More system, marks, and chain. This can include actions related to trademark or other intellectual property infringement.
Burneys Sweets More can also seek preliminary injunctive relief if the franchisee discloses or uses Burneys Sweets More's confidential information. This includes, but is not limited to, the customer list and franchised business data. Additionally, Burneys Sweets More can pursue this type of relief if the franchisee, its owners, or a managerial employee violates covenants against unfair competition or solicitation.
The FDD states that Burneys Sweets More is not required to post a bond to obtain injunctive relief with respect to the use of its marks. However, if the franchisee initiates arbitration, Burneys Sweets More agrees to arbitrate the entire dispute thereafter, except for the preliminary injunctive relief. The court action may remain pending to facilitate enforcement. This means that while the underlying dispute goes to arbitration, Burneys Sweets More can still seek immediate court intervention to prevent ongoing harm to its brand or business.