If Dryject seeks injunctive relief against a franchisee, is Dryject required to post a bond?

According to Dryject's 2025 Franchise Disclosure Document, Dryject is not required to post a bond to obtain injunctive relief against a franchisee. The franchise agreement states that the franchisee agrees that Dryject will not be required to post a bond for injunctive relief. The franchisee's only recourse if an injunction is issued is to seek its dissolution if warranted. The franchisee also expressly waives any claims for damages resulting from the wrongful issuance of such an injunction.

This means that if Dryject believes a franchisee is violating the franchise agreement in a way that causes irreparable harm, Dryject can seek a court order (injunction) to stop the franchisee's actions immediately without having to put up a bond. A bond is a sum of money a party pays to the court that would be forfeited if the injunction is later determined to be wrongfully issued and causes damages to the enjoined party.

By waiving the bond requirement, Dryject avoids the upfront cost of obtaining a bond, and the franchisee assumes greater risk. If the injunction is later found to be unwarranted, the franchisee is prevented from seeking damages for any losses suffered during the period the injunction was in place. This is not typical in all franchise systems, as some may require a bond to protect the franchisee.

Prospective Dryject franchisees should carefully consider this provision and understand the potential financial implications of waiving their right to claim damages if an injunction is wrongfully issued against them. It is advisable to seek legal counsel to fully understand the risks involved.