Does the Checkersrallys agreement specify that the franchisor can seek injunctive relief?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
rising therefrom, unless written notice specifying such breach or violation is provided to the other party within 12 months after the later of: (a) the date of such breach or violation; or (b) the date of discovery of the facts (or the date the facts could have been discovered, using reasonable diligence) giving rise to such breach or violation.
10.04 Costs of Enforcement. If we file a claim in a judicial or arbitration proceeding for amounts you or any of your Owners owe us or any of our Affiliates, or if we enforce this Agreement in a judicial or arbitration proceeding, and we prevail in any such proceeding, you agree to reimburse us for all of our costs and expenses, including reasonable accounting, paralegal, expert witness and attorneys' fees. If we are required to engage legal counsel in connection with your failure to comply with this Agreement, you must reimburse us for any attorneys' fees, costs and expenses we incur.
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).
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys may seek injunctive relief in court under certain conditions. Checkersrallys, as an alternative or supplement to arbitration, can pursue injunctive relief in any court of competent jurisdiction against conduct or threatened conduct for which there may be no adequate remedy at law or which may cause Checkersrallys irreparable harm. Checkersrallys can seek and obtain such injunctive relief without bond, but upon notice as required under applicable rules.
The document states that a franchisee's sole remedy if an injunction is entered is to seek its dissolution if warranted upon a hearing. The franchisee and their owners waive all claims for damages due to the wrongful issuance of any injunction. The franchisee and their owners acknowledge that any violation of Sections 6, 7.02(i) or 9.02 would result in irreparable injury to Checkersrallys for which no adequate remedy at law may be available.
Therefore, the franchisee and their owners consent to the issuance of an injunction prohibiting any conduct violating those sections. They also agree that any claim they may have against Checkersrallys, even if arising from the agreement, will not be a defense to the enforcement of those sections. However, in Minnesota, a franchisee cannot consent to Checkersrallys obtaining injunctive relief, although Checkersrallys may still seek it.