Does the availability of an adequate remedy at law affect Counselor Realty's right to an injunction?
Counselor_Realty Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 Injunctive Relief. Your breach of this Agreement could cause irreparable damage to Counselor or to other franchisees. Therefore, upon a breach or threatened breach of any of the terms of this Agreement, we are entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication, without bond, or having to show or prove any actual damage, and without regard to the availability of an adequate remedy at law.
Source: Item 22 — CONTRACTS (FDD page 32)
What This Means (2025 FDD)
According to Counselor Realty's 2025 Franchise Disclosure Document, the availability of an adequate remedy at law does not affect Counselor Realty's right to an injunction. Counselor Realty retains the right to seek an immediate injunction in the event of a breach or threatened breach of the Franchise Agreement.
Specifically, Counselor Realty is entitled to an immediate injunction restraining such breach and/or a decree of specific performance, pending arbitration or adjudication. This right is granted without the need for Counselor Realty to post a bond or demonstrate actual damages.
This clause in the franchise agreement is significant for prospective franchisees because it means that Counselor Realty can quickly seek court intervention to stop any behavior that they believe violates the agreement, even if the franchisee could potentially compensate them through monetary damages. This could include things like misuse of trademarks, unauthorized business practices, or breaches of confidentiality. The franchisee bears the risk of potentially being subject to an injunction even if the actual harm to Counselor Realty is not yet proven or fully quantifiable.