What is the franchisee's and franchisee affiliate's sole remedy in the event of injunctive relief against a Learningrx franchise?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee Affiliate agree that Franchisee's and/or Franchisee Affiliate's sole remedy in the event of the entry of such injunctive relief shall be dissolution of such injunctive relief, if warranted, upon hearing duly had; provided, however, that all claims for damages by reason of the wrongful issuance of any such injunction are hereby expressly waived by Franchisee and by Franchisee Affiliate.
Source: Item 23 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, if a court issues an injunction against a Learningrx franchisee or their affiliate, their only recourse is to seek the dissolution of that injunction. This means the franchisee and their affiliate can request the court to terminate the injunction, but only if there are valid grounds for doing so.
Importantly, the franchisee and their affiliate expressly waive any right to claim monetary damages resulting from the injunction's issuance, even if the injunction is later determined to have been wrongfully issued. This waiver is a significant point for prospective franchisees to consider, as it limits their ability to recover losses incurred due to an injunction, regardless of the circumstances.
Learningrx also states that injunctive relief may be appropriate in situations such as using products outside the bounds of the Franchise Agreement, violating in-term and post-term non-competes, and trademark infringement. This highlights the types of actions that could lead to Learningrx seeking an injunction against a franchisee. Franchisees should ensure they fully understand and comply with the terms of the franchise agreement to avoid such situations.