Under what circumstances is Spray Net entitled to seek injunctive relief against a franchisee?
Spray_Net Franchise · 2025 FDDAnswer from 2025 FDD Document
attempt to mediate a controversy, dispute, or claim through mediation as set forth in this Section 21(C) if such controversy, dispute, or claim concerns an allegation that a party has violated (or threatens to violate, or poses an imminent risk of violating): (i) any federally protected intellectual property rights in the Proprietary Marks, the System, or in any Confidential Information or other confidential information; (ii) any of the restrictive covenants contained in this Agreement; and (iii) any of Franchisee's payment obligations under this Agreement.
- D. Injunctive Relief. Franchisee acknowledges and agrees that irreparable harm could be caused to Franchisor by Franchisee's violation of certain provisions of this Agreement and, as such, in addition to any other relief available at law or equity, Franchisor shall be entitled to obtain in any court of competent jurisdiction, without bond, restraining orders or temporary or permanent injunctions in order to enforce, among other items, the provisions of this Agreement relating to: (i) Franchisee's use of the Proprietary Marks and Confidential Information (including any proprietary software used in connection with the Franchised Business); (ii) the in-term covenant not to compete, as well as any other violations of the restrictive covenants set forth in this Agreement; (iii) Franchisee's obligations on termination or expiration of this Agreement; (iv) disputes and controversies based on or arising under the Lanham Act, or otherwise involving the Proprietary Marks,
as now or hereafter amended; (v) disputes and controversies involving enforcement of the Franchisor's rights with respect to confidentiality under this Agreement;
Source: Item 23 — RECEIPTS (FDD pages 75–219)
What This Means (2025 FDD)
According to Spray Net's 2025 Franchise Disclosure Document, Spray Net can seek injunctive relief against a franchisee for violations of the franchise agreement that could cause irreparable harm. Specifically, Spray Net is entitled to seek restraining orders or temporary or permanent injunctions in any court of competent jurisdiction, without bond, to enforce provisions relating to the franchisee's use of proprietary marks and confidential information, including proprietary software used in connection with the franchised business.
Spray Net can also seek injunctive relief to enforce in-term covenants not to compete, as well as any other violations of the restrictive covenants set forth in the agreement. This includes the franchisee's obligations upon termination or expiration of the agreement. Additionally, Spray Net may seek injunctive relief in disputes and controversies based on or arising under the Lanham Act, or otherwise involving the proprietary marks, as now or hereafter amended.
Furthermore, Spray Net can pursue injunctive relief in disputes and controversies involving enforcement of Spray Net's rights with respect to confidentiality under the agreement. Finally, injunctive relief may be sought to prohibit any act or omission by the franchisee or its employees that constitutes a violation of applicable law, threatens Spray Net's franchise system, or threatens other franchisees of Spray Net. The franchisee's only remedy if such an injunction is entered will be the dissolution of the injunction, if appropriate, and the franchisee waives all damage claims if the injunction is wrongfully issued.
It is important to note that in Minnesota, the franchisee cannot consent to Spray Net obtaining injunctive relief, and a court will determine if a bond is required. This highlights the importance of franchisees understanding the specific laws and regulations in their state, as they may impact the franchisor's ability to obtain injunctive relief.