What is the franchisee's sole remedy if Craters & Freighters obtains injunctive relief?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that Franchisor may have such temporary or preliminary injunction relief, without bond, but upon due notice, and Franchisee's sole remedy in the event of the entry of such injunctive relief will be the dissolution of such injunctive relief, 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 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, if Craters & Freighters obtains temporary or preliminary injunctive relief against a franchisee, the franchisee's sole remedy is to seek the dissolution of that injunctive relief. This means the franchisee's recourse is limited to attempting to have the injunction removed or lifted by the court.
Critically, the franchisee expressly waives any right to claim monetary damages resulting from the issuance of the injunction, even if it is later determined that the injunction was wrongfully issued. This waiver is a significant point for prospective franchisees to consider, as it limits their ability to recover losses incurred due to an injunction, regardless of the circumstances.
This type of clause is not uncommon in franchise agreements, as it aims to protect the franchisor from potentially large damage claims that could arise from injunctive relief actions. However, franchisees should carefully evaluate the potential risks associated with waiving their rights to damages, especially considering that injunctive relief can significantly impact their business operations.