Recent cases have seen franchisors curing large judgements against franchisees to own outstanding back royalties and you will tradee day, franchisees had been successful into the acquiring multi-million buck, genuine and you can punitive destroy prizes from franchisors. Large recoveries were made facing franchisors below common law to own fraud and you can violation away from required covenant of good believe and you may reasonable dealing. Statutory problems are usually retrieved by the franchisees around state deceptive trade techniques serves, “little” federal trading payment serves and antitrust laws.
Usually, brand new give regarding an initial injunction is actually a severe remedy you to should not be made use of unless obviously rationalized. Most business cases involving first injunctions has actually developed in one of three contexts: new franchisee’s request for a short injunction against cancellation of your franchise; the fresh franchisor’s request for a preliminary injunction against a terminated franchisee’s use of the franchisor’s trademarks; additionally the franchisor’s request for an initial injunction resistant to the franchisee’s admission out-of a covenant to not ever contend.