Does the waiver of damages apply to wrongful issuance of injunctive relief related to Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If either party secures any such injunction or order of specific performance, the non-securing party agrees to pay to the securing party its costs and attorneys' fees described in Section 14.3 and damages that may be permitted under this Agreement.
The non-securing party's sole remedy in the event of the entry of such injunctive relief will be the dissolution of such injunctive relief, if warranted, upon a hearing duly held (all claims for damages by reason of the wrongful issuance of such injunction being expressly waived hereby).
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, in the event that either party secures an injunction or order of specific performance, the non-securing party is responsible for covering the securing party's costs, attorney's fees, and any damages permitted under the agreement. However, the non-securing party's sole recourse if an injunction is issued against them is to seek the dissolution of the injunction if it's warranted after a hearing.
Specifically, the agreement states that the non-securing party expressly waives any claims for damages resulting from the wrongful issuance of such an injunction. This means that if a Southern Steer franchisee is subject to an injunction, and it is later determined that the injunction was wrongly issued, the franchisee cannot sue for damages incurred as a result of the injunction.
This waiver is a significant point for potential Southern Steer franchisees to consider. It limits their legal options if they believe they have been unfairly targeted by an injunction. While they can challenge the injunction itself, they cannot seek compensation for any financial losses or other harm suffered during the period the injunction was in effect. Franchisees should seek legal counsel to fully understand the implications of this waiver before signing the franchise agreement.