If Cream seeks injunctive relief, is Cream required to post a bond?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that we will not be required to post a bond to obtain injunctive relief and that your only remedy if an injunction is entered against you will be the dissolution of that injunction, if warranted, upon due hearing (all claims for damages by injunction being expressly waived hereby).
Notwithstanding the foregoing, a court will determine if a bond is required.
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, Cream is not required to post a bond to obtain injunctive relief, with the franchisee's only remedy being the dissolution of the injunction if warranted after a hearing. This is explicitly stated in Item 23 under the section "Injunctive Relief." The franchisee also waives all claims for damages caused by the injunction. This clause applies under customary equity rules for restraining orders, temporary injunctions, and preliminary injunctions.
However, this condition may not apply in all states. Specifically, for franchisees in Minnesota, the FDD states that a court will determine if a bond is required. This means that while the franchise agreement generally states Cream does not need to post a bond, Minnesota courts will make the final decision on whether a bond is necessary for injunctive relief.
This difference highlights the importance of understanding state-specific franchise laws, as they can override certain provisions in the franchise agreement. Prospective franchisees should consult with a legal professional to understand how these state laws may impact their rights and obligations.