Can Spray Net seek injunctive relief before mediation or arbitration?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
nt jurisdiction located in the County of New Castle, Delaware or, if appropriate, the United States District Court for the District of Delaware. The undersigned hereby irrevocably consent to the jurisdiction of these courts.
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- Third Party Beneficiaries. Franchisor's officers, directors, shareholders, agents and/or employees are express third-party beneficiaries of this Agreement and the mediation and other dispute
resolution provisions contained herein, each having authority to specifically enforce the right to mediate and litigate claims asserted against such person(s) by you.
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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.
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Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, the company's ability to seek injunctive relief before mediation or arbitration depends on the specific circumstances and the governing state law. Generally, Spray Net retains the right to apply to any court with jurisdiction to obtain remedies like attachment, temporary injunctions, preliminary injunctions, or other emergency relief to protect its interests before or during mediation or arbitration proceedings. However, this right is subject to certain limitations and conditions, particularly in states like Minnesota.
For instance, the Illinois Addendum notes that the franchise agreement is governed by Illinois law, and the parties submit to the jurisdiction and venue of federal and state courts in Illinois, except for matters resolved by arbitration. The Minnesota Addendum states that a franchisee cannot consent to Spray Net obtaining injunctive relief, but Spray Net may seek it, with a court determining if a bond is required. This suggests that while Spray Net generally has the right to seek injunctive relief, the franchisee's consent cannot be mandated, and a court will decide on the necessity of a bond.
Furthermore, the standard franchise agreement outlines specific instances where Spray Net is not required to attempt mediation before commencing legal action. These exceptions include allegations of violations or imminent risks of violating federally protected intellectual property rights in the Proprietary Marks, the System, or Confidential Information, breaches of restrictive covenants, and failures to meet payment obligations. In these cases, Spray Net can pursue legal remedies, including injunctive relief, without first engaging in mediation. Therefore, a prospective franchisee should carefully review the specific terms of the franchise agreement and any state-specific addenda to understand the full scope of Spray Net's rights and the franchisee's obligations regarding dispute resolution and injunctive relief.