factual

Does Zoomin Groomin have to post a bond for an injunction against the Recipient for breaching the Non-Disclosure Agreement?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

In the event of a breach or threatened breach of this Agreement, Company shall be entitled to an injunction restraining Recipient.

Recipient waives

the posting of a bond by Company on any preliminary, temporary, or permanent injunction obtained by Company.

Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)

What This Means (2025 FDD)

According to Zoomin Groomin's 2025 Franchise Disclosure Document, if the company seeks an injunction against a recipient for breaching the Non-Disclosure Agreement, the recipient waives the requirement for Zoomin Groomin to post a bond. This waiver applies to any preliminary, temporary, or permanent injunction obtained by Zoomin Groomin.

This means that a franchisee (the recipient in this case) cannot demand that Zoomin Groomin provide financial security (a bond) to cover potential damages to the franchisee if the injunction is later found to be unjustified. The franchisee essentially gives up this protection.

This waiver of bond requirement is intended to make it easier and less expensive for Zoomin Groomin to pursue legal action against franchisees who violate the Non-Disclosure Agreement. It reduces Zoomin Groomin's financial risk in seeking an injunction, as they do not have to put up money that could be lost if they don't win the case. This is a significant advantage for the franchisor in enforcing the agreement.

Franchisees should be aware of this provision, as it limits their ability to seek compensation if an injunction is wrongly issued against them. It is a fairly common practice in franchising for franchisors to include clauses that waive the bond requirement, as it protects their interests in safeguarding confidential information and enforcing contractual obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.