Under the Cream franchise agreement, does the franchisee waive all claims for damages caused by an injunction?
Cream Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement, including the provisions of Sections 7.E or 7.F, bars our right to obtain specific performance of the provisions of this Agreement and injunctive relief against any threatened or actual conduct that will cause us, our affiliates, or the System loss or damage, under customary equity rules, including applicable rules for obtaining restraining orders and temporary or preliminary injunctions. You agree that we may seek such relief from any court of competent jurisdiction in addition to such further or other relief as may be available to us at law or in equity. 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).
Source: Item 23 — RECEIPTS (FDD pages 61–192)
What This Means (2025 FDD)
According to Cream's 2025 Franchise Disclosure Document, a franchisee expressly waives all claims for damages caused by an injunction. Cream can seek specific performance of the provisions outlined in the franchise agreement and injunctive relief against any actions that may cause loss or damage to Cream, its affiliates, or the Cream system.
Cream is not required to post a bond to obtain injunctive relief. If an injunction is entered against a Cream franchisee, the franchisee's only recourse is to seek the dissolution of the injunction if warranted after a hearing.
This waiver of damage claims related to injunctions is a significant point for prospective franchisees. It means that if Cream obtains an injunction against a franchisee, even if that injunction is later found to be unwarranted, the franchisee cannot sue Cream for any financial losses suffered as a result of the injunction. This could include lost profits, legal fees, or other expenses incurred during the period the injunction was in place. Franchisees should carefully consider this provision and seek legal counsel to understand its potential impact.