Does the developer waive claims for damages from wrongful issuance of an injunction by Floyds 99?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
onflict of law. Developer and Franchisor have negotiated regarding a forum in which to resolve any disputes which may arise between them and have agreed to select a forum in order to promote stability in their relationship. Therefore, if a claim is asserted in any legal proceeding involving Developer, its officers, directors or managers (collectively, "Developer Affiliates") and Franchisor, its officers, directors, managers or sales employees (collectively, "Franchisor Affiliates"), all parties agree that the exclusive venue for disputes between them shall be in the state and federal courts of Colorado, in Denve
Source: Item 23 — RECEIPT (FDD pages 58–229)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a developer does waive claims for damages resulting from the wrongful issuance of an injunction. Specifically, while both Floyds 99 and the developer have the right to seek injunctive relief from a court, the developer's remedies are limited if an injunction is issued.
The developer's sole recourse is to pursue the dissolution of the injunction if it is deemed unwarranted after a hearing. The developer expressly waives the right to claim damages due to the injunction's wrongful issuance. Floyds 99 can obtain injunctive relief without posting a bond exceeding $500, provided they give due notice.
This waiver of damage claims is a significant point for potential Floyds 99 developers. It means that if an injunction is wrongly issued against them, their legal recourse is limited to dissolving the injunction, and they cannot seek financial compensation for any losses incurred during the period the injunction was in effect. This could include lost profits, legal fees, or other related expenses. Franchisees should carefully consider this provision and seek legal counsel to understand the full implications before signing the agreement.