In Minnesota, who determines if a bond is required for injunctive relief sought by Cool Binz?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
Injunctive Relief. The franchisee cannot be required to consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400(J). A court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, in Minnesota, the court will determine if a bond is required if Cool Binz seeks injunctive relief against a franchisee. This is in reference to Section 15.F and 15.H of the franchise agreement. This stipulation is added to the franchise agreement to comply with Minnesota Rules 2860.4400(J).
This means that Cool Binz cannot unilaterally demand a bond from a franchisee in Minnesota as a prerequisite for seeking an injunction. The decision to require a bond rests solely with the court.
For a prospective Cool Binz franchisee in Minnesota, this is a beneficial provision. It ensures that a neutral third party (the court) assesses the necessity of a bond, protecting the franchisee from potentially unreasonable financial burdens should Cool Binz seek injunctive relief.