factual

Can Floyds 99 seek injunctive relief?

Floyds_99 Franchise · 2025 FDD

Answer from 2025 FDD Document

ct.

  1. The following statement is added at the end of Sections 19.4, 20.1, 20.2 and 20.6:

Minnesota law provides the Franchisee with certain termination and non-renewal rights. Minn. Stat. Sec. 80C.14 Subd. 3, 4 and 5 require, except in certain specified cases, that the Franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of this Agreement.

  1. The last sentence of Section 24.4 is deleted, with the following statement inserted in its place:

Minnesota Statutes, Section 80C.21 and Minnesota Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring wavier of a jury trial, or requiring the franchisee to

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 franchisee have the right to seek injunctive relief from a court of competent jurisdiction. Specifically, Floyds 99 can seek injunctive relief without needing to post a bond exceeding $500, provided they give due notice.

However, the franchisee's sole recourse if such injunctive relief is granted is to pursue the dissolution of the injunction, if warranted, after a hearing. The franchisee expressly waives any claims for damages resulting from the wrongful issuance of an injunction.

This clause outlines the conditions under which Floyds 99 can seek immediate court intervention to prevent certain actions by a franchisee, such as violations of the franchise agreement. The relatively low bond amount and the waiver of damage claims are significant points for a prospective franchisee to consider, as they limit the franchisee's potential remedies in case of a wrongfully issued injunction. This is not unusual, as franchisors often seek to protect their brand standards and operational systems through injunctive relief.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.