If an injunction is entered against a Cicis franchisee, what is the franchisee's sole remedy?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement bars our right to obtain specific performance of the provisions of this Agreement and injunctive relief against any threatened or actual conduct that will cause us, the Marks, or the system of Cicis Restaurants loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions. You agree that we may seek such relief from any court of competent jurisdiction in addition to such further or other relief as may be available to us at law or in equity. You agree that we will not be required to post a bond to obtain injunctive relief and that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Source: Item 23 — RECEIPTS (FDD pages 65–263)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Cicis retains the right to seek specific performance of the franchise agreement and injunctive relief against conduct that could harm Cicis, its trademarks, or its restaurant system. This includes seeking restraining orders, temporary injunctions, and preliminary injunctions. Cicis can pursue such actions in any court with appropriate jurisdiction and is not required to post a bond to obtain injunctive relief.
For a Cicis franchisee, if an injunction is entered against them, their sole remedy is to seek the dissolution of that injunction if it is warranted. The franchisee expressly waives all claims for damages resulting from the injunction. This means that if a court orders a franchisee to stop certain activities (e.g., violating brand standards or infringing on trademarks), the franchisee's only recourse is to argue that the injunction should be lifted, and they cannot sue Cicis for any financial losses incurred due to the injunction.
This provision is significant because it limits the legal options available to a Cicis franchisee in the event of a dispute leading to an injunction. Franchisees should understand that they are giving up the right to seek monetary compensation for damages caused by an injunction, even if they believe the injunction was wrongly issued. This clause underscores the importance of adhering to the franchise agreement and resolving disputes amicably to avoid situations where injunctive relief might be sought by Cicis.
Such clauses are not uncommon in franchise agreements, as franchisors seek to protect their brand and system standards. However, franchisees should carefully consider the implications of waiving their right to damages and seek legal counsel to fully understand their rights and obligations under the franchise agreement.