Is Learningrx required to furnish a bond or other security to obtain injunctive relief in the event of a breach?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee and Franchisee Affiliate agree that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law.
Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, Franchisor shall be entitled to enforce the provisions of this Agreement and shall be entitled, in addition to any other remedies that are made available to it at law or in equity, including the right to terminate the Franchise Agreement, to a temporary and/or permanent injunction and/or a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security. 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, in the event of a breach or threatened breach of the agreement by the franchisee, Learningrx is entitled to seek injunctive relief without having to furnish a bond or other security. This means that Learningrx can ask a court to order the franchisee to stop certain actions without putting up money or assets as a guarantee.
This clause is significant for prospective Learningrx franchisees because it streamlines the process for Learningrx to obtain immediate court intervention to protect its interests. The franchisee also agrees that their sole remedy if an injunction is issued is to seek its dissolution if warranted, and they waive the right to claim damages for the wrongful issuance of an injunction.
This arrangement is generally favorable to the franchisor, as it reduces the financial burden and speeds up the process of obtaining injunctive relief. Franchisees should be aware of this provision and understand that their recourse is limited to challenging the injunction itself, rather than seeking monetary damages, if they believe it was wrongly issued. This is a fairly standard practice in franchising agreements, as franchisors seek to protect their brand and system standards efficiently.