Does the Gold Star franchise agreement state that seeking injunctive or provisional relief constitutes a waiver of the company's right to compel use of the procedures set forth below?
Gold_Star Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, the COMPANY shall be entitled without bond to the entry of temporary and permanent injunctions and orders of specific performance enforcing the provisions of this Agreement relating to use of the Marks, Confidential Material or competition, the rights and obligations upon termination of expiration of this Agreement, and rights and obligations relating to any Transfer or similar matters of potential irreparable harm to the COMPANY, and shall have the right to seek from an appropriate court such provisional remedies as unlawful detainer or eviction, judicial foreclosure of liens, claims in bankruptcy and similar remedies; and seeking any such injunctive or provisional relief shall not constitute a waiver of the COMPANY's right to compel use of the procedures set forth below.
Source: Item 23 — Receipts (FDD pages 53–163)
What This Means (2025 FDD)
According to Gold Star's 2025 Franchise Disclosure Document, the franchise agreement specifies that seeking injunctive or provisional relief does not constitute a waiver of Gold Star's right to compel the use of procedures outlined in the agreement. This provision is designed to protect Gold Star's interests and ensure that it can pursue necessary legal actions without forfeiting its ability to enforce other contractual obligations.
This clause primarily benefits Gold Star by allowing them to seek immediate legal remedies, such as injunctions, to protect their brand, trademarks, and operational standards, while still maintaining their right to enforce dispute resolution procedures detailed in the franchise agreement. For a franchisee, this means that even if Gold Star seeks an immediate court order, they can still require the franchisee to adhere to the standard dispute resolution processes outlined in the franchise agreement.
For a prospective franchisee, this clause highlights the importance of understanding all potential legal remedies and dispute resolution processes detailed in the franchise agreement. It ensures that Gold Star can act swiftly to protect its interests without losing the ability to enforce other aspects of the agreement. Franchisees should be aware of this provision and seek legal counsel to fully understand its implications.
This type of clause is relatively common in franchise agreements, as it allows franchisors to protect their brand and system while still maintaining control over dispute resolution. Franchisees should carefully review the circumstances under which Gold Star might seek injunctive relief and how it could impact their business operations.