What is the condition for the developer's sole remedy in the event of injunctive relief obtained by Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4. | Section 13.5 is deleted and the following is inserted in its place: | ||
|---|---|---|---|
| 13.5 waived by the Developer. | Injunctive Relief. The Franchisor and the Developer shall each have the right in the proper case to seek injunctive relief from a court of competent jurisdiction. The Developer agrees that the Franchisor may seek such injunctive relief, without posting a bond or bonds totaling more than $500, but upon due notice, and the Developer's sole remedy in the event of the entry of such injunctive relief shall be the dissolution of such injunctive relief, if warranted, upon hearing duly had; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly |
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, both Floyds 99 and the developer have the right to seek injunctive relief from a court. Floyds 99 may seek injunctive relief without posting a bond exceeding $500, provided they give due notice.
The developer's sole remedy if an injunction is entered against them is to pursue the dissolution of the injunction, if warranted, after a hearing. This means the developer cannot seek additional compensation or damages from Floyds 99, even if the injunction is later determined to be wrongfully issued.
This clause significantly limits the developer's recourse in the event of an injunction. While they can attempt to have the injunction dissolved, they waive the right to claim monetary damages, even if the injunction proves to be unjustified. This is a notable risk for potential developers, as it could lead to financial losses if an injunction impacts their business operations, regardless of the injunction's validity.