If injunctive relief is granted against a Kidokinetics franchisee, what is the franchisee's sole remedy?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree that failure to comply with this Agreement will cause substantial and irreparable damage to us and/or other Kidokinetics franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation 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).
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, if a court grants injunctive relief against a franchisee, the franchisee's sole remedy is to seek the dissolution of the injunction. This means that the franchisee's only recourse is to attempt to have the court order lifted or removed.
Kidokinetics franchisees also expressly waive any right to claim damages if the injunctive relief was wrongfully issued. This waiver prevents franchisees from seeking financial compensation for any losses or harm they may have suffered due to the injunction, even if it is later determined that the injunction was not justified.
This arrangement is designed to protect Kidokinetics from potential financial liabilities resulting from injunctions. However, it places a significant burden on the franchisee, who must bear the costs and risks associated with challenging the injunction without the possibility of recovering damages, even if the injunction was wrongly issued. Prospective franchisees should carefully consider this provision and seek legal counsel to understand its implications fully.