Does Counselor Realty need to post a bond to obtain an injunction against a franchisee?
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, in the event of a breach or threatened breach of the franchise agreement by the franchisee, Counselor Realty is entitled to seek an immediate injunction. This injunction would restrain the franchisee from continuing the breach or compel specific performance of the agreement.
Importantly, Counselor Realty is entitled to this injunctive relief without the requirement of posting a bond. Additionally, Counselor Realty does not need to demonstrate or prove any actual damages to obtain the injunction, nor is the availability of an adequate remedy at law a factor.
This means that if a franchisee violates the franchise agreement, Counselor Realty can quickly seek a court order to stop the violation without having to put up a financial guarantee (bond) or prove they've suffered specific financial harm. This clause is designed to protect Counselor Realty's interests and the interests of other franchisees by ensuring swift action against any franchisee who violates the agreement.
This is a significant advantage for Counselor Realty, as obtaining a bond can be costly and time-consuming. For a franchisee, this underscores the importance of adhering to the franchise agreement, as violations can lead to immediate legal action without the typical safeguards of proving damages or the availability of alternative legal remedies.