Does Crepe De Licious have to post a bond when applying for injunctive relief?
Crepe_De_Licious Franchise · 2025 FDDAnswer from 2025 FDD Document
med to have violated the terms of this Agreement if any member of your immediate family uses or discloses the Intellectual Property. However, you may rebut this presumption by furnishing evidence conclusively showing you did not disclose the Intellectual Property to the family member.
- 5. Covenants Reasonable. You acknowledge and agree that: (i) the terms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU HEREBY WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
- 6. Breach. You agree that failure to comply with this Agreement will cause substantial and irreparable damage to us and/or other Crepe de licious fr
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Crepe De Licious Franchise Disclosure Document, Crepe De Licious can apply for injunctive relief without posting a bond, provided they give due notice. Injunctive relief is a court order that requires a party to do or cease doing a specific action. This means that Crepe De Licious aims to avoid the typical requirement of posting a bond, which is a sum of money deposited with the court to cover potential damages to the franchisee if the injunction is later found to be wrongfully issued. The franchisee's sole remedy, if an injunction is issued, is to seek the dissolution of the injunction.
However, if a court requires Crepe De Licious to file a bond despite the agreement, the maximum bond amount is capped at $1,000. This clause provides a degree of cost certainty for Crepe De Licious while potentially limiting the protection available to the franchisee in the event of a wrongful injunction.
This arrangement is not typical in all franchise systems, as the bond amount can vary significantly depending on the potential damages involved. Franchisees should be aware of this provision, understanding that their ability to claim damages for a wrongful injunction is expressly waived, and that even if a bond is required, it is capped at a relatively low amount.