Regarding injunctive relief, does the Floyds 99 agreement require due notice to the developer?
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 Floyds 99's 2025 Franchise Disclosure Document, the agreement specifies conditions related to injunctive relief. It states that both Floyds 99 and the developer (franchisee) have the right to seek injunctive relief from a court.
Specifically, Floyds 99 can obtain injunctive relief against a developer (franchisee) after providing "due notice." In such cases, Floyds 99 may obtain an injunction without needing to post a bond exceeding $500. The franchisee's sole recourse if an injunction is issued is to pursue the dissolution of the injunction if warranted. The franchisee also waives any claims for damages resulting from a wrongfully issued injunction.
This means that a Floyds 99 franchisee could be subject to a court-ordered injunction if they violate the franchise agreement, but they are entitled to notice beforehand. However, the franchisee gives up the right to sue Floyds 99 for damages even if the injunction turns out to be unjustified. This is a significant point for potential franchisees to consider, as it limits their legal options in the event of a dispute with Floyds 99.