If an injunction is entered against a Cream franchisee, what is the franchisee's only remedy?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You cannot consent to us obtaining injunctive relief. You may seek injunctive relief. See Minnesota Rule 2860.4400(J). Also, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to the 2025 FDD, Cream franchisees in Minnesota cannot consent to Cream obtaining injunctive relief against them. However, the franchisee may seek injunctive relief. The court will determine if a bond is required. This means that while Cream cannot force a franchisee to agree to an injunction, the franchisee has the right to pursue injunctive relief against Cream if necessary. The court will decide whether a bond is required in such cases.
This provision is specific to Minnesota due to state franchise laws. Franchisees should be aware of their rights to seek injunctive relief and understand the circumstances under which a court might require a bond. This ensures that franchisees have some recourse against Cream if they believe the franchisor is acting unlawfully or breaching the franchise agreement.
It is important for prospective Cream franchisees to consult with a legal professional to fully understand their rights and obligations under the franchise agreement, particularly in states with specific franchise laws like Minnesota. Understanding these rights can help franchisees protect their investment and business operations.