Does the Spray Net franchise agreement require the franchisee to attempt mediation before seeking injunctive relief?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Right to Injunctive Relief. Nothing contained in this Guaranty will prevent Franchisor from applying to or obtaining from any court having jurisdiction a writ of attachment, temporary injunction, preliminary injunction and/or other emergency relief available to safeguard and protect Franchisor's interest prior to the filing of any mediation or arbitration proceeding, or pending the trial or handing down of a decision or award under any mediation or arbitration proceeding conducted hereunder.
If injunctive relief is granted, your only remedy will be the court's dissolution of the injunctive relief.
If the injunctive relief was wrongfully issued, you expressly waive all claims for damages you incurred as a result of the wrongful issuance.
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, franchisees are generally required to attempt mediation before commencing legal action against Spray Net. However, this requirement does not apply when Spray Net seeks injunctive relief to protect its interests.
Specifically, the franchise agreement states that nothing prevents Spray Net from seeking a writ of attachment, temporary injunction, preliminary injunction, or other emergency relief from a court to protect its interests before or during mediation or arbitration proceedings. This allows Spray Net to take immediate legal action to safeguard its proprietary rights and business operations without being delayed by mandatory mediation.
This clause also stipulates that if injunctive relief is granted and later dissolved by the court, the franchisee's sole remedy is the dissolution of the injunction. Furthermore, the franchisee expressly waives all claims for damages incurred as a result of the wrongful issuance of the injunctive relief. This provision limits Spray Net's liability in the event that an injunction is later deemed to have been improperly issued, placing the risk of such errors on the franchisee.
In summary, while franchisees typically must attempt mediation for disputes, Spray Net retains the right to seek immediate injunctive relief without prior mediation, and franchisees waive certain damage claims related to wrongfully issued injunctions. This aspect of the agreement favors Spray Net's ability to protect its interests swiftly.