Does Craters & Freighters have to post a bond to obtain temporary or preliminary injunctive relief?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary, Franchisor and Franchisee will each have the right in a proper case to obtain temporary or preliminary injunctive relief from a court of competent jurisdiction in connection with any Claim; provided, however, that the parties must contemporaneously submit their dispute involving such Claim for mediation and arbitration on the merits in accordance with Section 23.2 and Section 23.3, respectively.
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).
24. NOTICES.
Any notice, request, demand, approval, consent, or other communication which the parties hereto may be required or permitted to be given hereunder must be in writing and may be transmitted to
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, Craters & Freighters may be able to obtain temporary or preliminary injunctive relief without posting a bond. Specifically, the franchise agreement states that Craters & Freighters can seek this type of relief, without bond, provided they give due notice to the franchisee. In the event such injunctive relief is granted, the franchisee's only recourse is to seek dissolution of the injunction if warranted. The franchisee expressly waives any claims for damages resulting from the wrongful issuance of the injunction.
This means that if Craters & Freighters believes a franchisee is violating the franchise agreement and seeks an immediate court order to stop the franchisee's actions, they may not be required to put up a bond to protect the franchisee in case the injunction is later found to be unjustified. This could potentially expose the franchisee to financial risk if an injunction is wrongly issued against them.
However, the FDD also includes a provision specific to Minnesota franchisees. In Minnesota, a court will determine if a bond is required should Craters & Freighters seek injunctive relief. This suggests that the standard franchise agreement term regarding waiving the bond may not be enforceable in Minnesota, and the decision to require a bond rests with the court. Therefore, prospective franchisees should be aware of the specific laws in their state regarding injunctive relief and bond requirements.