Does the Checkersrallys agreement allow for injunctive relief?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
10.05 Injunctive Relief. We, as an alternative or supplement to arbitration pursuant to Section 10.06, may obtain in any court of competent jurisdiction any injunctive relief, including temporary restraining orders and preliminary injunctions, against conduct or threatened conduct for which no adequate remedy at law may be available or which may cause us irreparable harm. We may seek and obtain such injunctive relief, without bond, but
upon notice as required under applicable rules, in addition to such further and other relief as may be available at equity or law, and your sole remedy in the event of the entry of such injunction, shall be its dissolution, if warranted, upon hearing duly had (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). You and each of your Owners acknowledge that any violation of Sections 6, 7.02(i) or 9.02 would result in irreparable injury to us for which no adequate remedy at law may be available. Accordingly, you and each of your Owners consent and agree to the issuance of an injunction prohibiting any conduct in violation of any of those sections and agrees that the existence of any claim you or any of your Owners may have against us, whether or not arising from this Agreement, shall not constitute a defense to the enforcement of any of those Sections.
10.06 Arbitration.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkersrallys retains the right to seek injunctive relief against franchisees under certain conditions. Specifically, Checkersrallys may pursue injunctive relief in any court of competent jurisdiction as an alternative or supplement to arbitration, especially in cases where there is no adequate remedy at law or where Checkersrallys may suffer irreparable harm. This includes the ability to obtain temporary restraining orders and preliminary injunctions.
Checkersrallys can seek and obtain injunctive relief without posting a bond, provided they give the franchisee notice as required by applicable rules. The franchisee's sole remedy if an injunction is issued is to seek its dissolution if warranted upon a hearing. The agreement explicitly states that franchisees waive any claims for damages resulting from the wrongful issuance of such an injunction.
The agreement further stipulates that any violation of Sections 6, 7.02(i), or 9.02 of the agreement by the franchisee or their owners would cause irreparable injury to Checkersrallys, for which monetary damages would not be sufficient. Consequently, franchisees and their owners consent to the issuance of an injunction to prevent any conduct violating these sections, and any claims they may have against Checkersrallys will not serve as a defense against the enforcement of these sections. However, in Minnesota, a franchisee cannot waive any rights, and the franchisee cannot consent to the franchisor obtaining injunctive relief, although the franchisor may seek injunctive relief. The court will also determine whether a bond is required.