If an injunction is entered against a Casiola franchisee, what is the franchisee's sole remedy?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Without limitation to the rights set forth in Article 6 of this Agreement, Franchisee agrees that Franchisor may obtain such injunctive relief. Franchisee agrees that Franchisor will not be required to post a bond (other than as set forth in Article 6.G. of this Agreement) to obtain injunctive relief and that Franchisee's only remedy if an injunction is entered against Franchisee will be the dissolution of that injunction, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby).
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if an injunction is entered against a franchisee, the franchisee's sole remedy is the dissolution of that injunction, if warranted, upon a hearing duly held. The franchisee expressly waives all claims for damages resulting from the wrongful issuance of such an injunction.
This means that if Casiola seeks and obtains a court order (injunction) to stop a franchisee from certain actions (typically violations of the franchise agreement), the franchisee's only recourse is to try to get the injunction lifted. They cannot sue Casiola for financial losses incurred because of the injunction, even if it turns out the injunction was wrongly issued.
This is a significant point for prospective Casiola franchisees. It limits their legal options and potential compensation if they believe an injunction was unfairly imposed. While Casiola may seek injunctive relief without posting a bond, if a court requires a bond, the amount will not exceed $1,000. Franchisees should carefully consider this clause and understand the potential financial risks before signing the franchise agreement.