Under what circumstances can Craters & Freighters seek 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).
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, both Craters & Freighters and the franchisee have the right to seek temporary or preliminary injunctive relief from a court of competent jurisdiction in connection with any claim. However, this right is conditional.
Specifically, the parties must simultaneously submit their dispute involving the claim for mediation and arbitration on the merits, adhering to the procedures outlined in Section 23.2 and Section 23.3 of the agreement. This means that while Craters & Freighters can seek immediate court intervention to prevent potential harm, they must also engage in alternative dispute resolution methods to resolve the underlying issue.
Furthermore, the franchisee agrees that Craters & Freighters may obtain temporary or preliminary injunctive relief without having to post a bond, provided due notice is given. In the event such injunctive relief is granted, the franchisee's sole recourse is to seek the dissolution of the injunction if warranted after a hearing. The franchisee expressly waives any claims for damages resulting from the wrongful issuance of the injunction. This arrangement favors Craters & Freighters by streamlining their ability to obtain injunctive relief while limiting the franchisee's potential remedies.