Is a Crave Cookies franchisee allowed to settle an Action without the Indemnitee's consent?

According to Crave Cookies' 2025 Franchise Disclosure Document, a franchisee is not allowed to settle an Action without the consent of the Indemnitee. This requirement is part of the indemnity agreement outlined in Article 16.1.

This means that if a claim or lawsuit is brought against Crave Cookies or its related entities due to the franchisee's business operations, the franchisee is responsible for defending and covering any losses. However, the franchisee cannot independently settle the case without first obtaining consent from Crave Cookies, the Indemnitee. This provision ensures that Crave Cookies maintains control over the resolution of legal matters that could impact the brand or its reputation.

This requirement protects Crave Cookies by ensuring consistent legal strategies and preventing franchisees from making settlements that could set unfavorable precedents or create further liabilities for the brand. For a prospective franchisee, this means they must work closely with Crave Cookies in managing and resolving any legal claims related to their business, and they cannot act unilaterally in settling such claims.