For Hck Hot Chicken, is a bond required for injunctive relief, and if so, what is the maximum amount?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ms of this Agreement are reasonable both in time and in scope of geographic area; and (ii) you have sufficient resources and business experience and opportunities to earn an adequate living while complying with the terms of this Agreement. YOU HEREBY WAIVE ANY RIGHT TO CHALLENGE THE TERMS OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.
- 8. Breach. You agree that failure to comply with the terms of this Agreement will cause substantial and irreparable damage to us and/or other HCK Hot Chicken franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of the terms of this Agreement will entitle us to injunctive relief. You agree that we may apply for such injunctive relief without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours in the event of the entry of such injunction will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the parties agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Agreement are exclusive of any oth
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, Hck Hot Chicken may seek injunctive relief against a franchisee for violations of the Franchise Agreement. Typically, a court might require the franchisor to post a bond to protect the franchisee in case the injunction is later found to be unwarranted. However, the agreement specifies that Hck Hot Chicken can apply for injunctive relief without being required to post a bond.
Despite the standard waiver of a bond, the agreement anticipates the possibility that a court might still require one. In such a case, the agreement sets a limit on the bond amount.
Specifically, if a court requires a bond despite the agreement's intention to waive it, the maximum bond amount is capped at $1,000. This means that a franchisee's potential liability related to a bond for injunctive relief is limited to this amount, providing a degree of financial certainty.
This pre-agreed limit could be beneficial for the franchisee, as it prevents the franchisor from seeking a very high bond that could be financially crippling. It also provides some protection for Hck Hot Chicken, as the franchisee expressly waives any claims for damages resulting from a wrongful injunction, with the franchisee's sole remedy being the dissolution of the injunction.