In Minnesota, who determines if a bond is required when a Cream franchisee seeks injunctive relief?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The following is added to the end of Section 7.I of the Area Development Agreement: 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, in Minnesota, a court will determine if a bond is required when a franchisee seeks injunctive relief. This stipulation is added to the end of Section 7.I of the Area Development Agreement.
This means that if a Cream franchisee in Minnesota seeks a court order (injunctive relief), the court, not Cream, will decide whether the franchisee needs to post a bond. A bond is a sum of money that the court may require to be paid, ensuring that the franchisee can cover any damages to Cream if the injunction is later found to be unjustified.
This provision protects the Cream franchisee by ensuring an impartial decision regarding the bond requirement, preventing Cream from unilaterally imposing a potentially burdensome financial obligation. It aligns with Minnesota law, which aims to protect franchisees' rights and remedies.