What are the cooperation requirements for both the Moes Southwest Grill franchisee and the Indemnified Party in the defense of a claim?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You or the Indemnified Party (as the case may be) shall keep you or the Indemnified Party (as the case may be) reasonably apprised of, and shall respond to any reasonable requests concerning, the status of the defense of any claim of which it is maintaining and shall cooperate in good faith with each other with respect to the defense of any such claim.
You shall not, without the prior written consent of the Indemnified Parties, (a) settle or compromise any claim or consent to the entry of any judgment with respect to any claim which does not include a written release from liability of such claim for the Indemnified Parties, or (b) settle or compromise any claim in any manner that may adversely affect the Indemnified
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, both the franchisee and the Indemnified Party have specific cooperation requirements when defending against a claim. Both parties must keep each other reasonably informed about the status of the defense and respond to reasonable requests. This ensures transparency and allows each party to understand the progress and strategy involved in the defense.
The franchisee and the Indemnified Party are required to cooperate in good faith with each other concerning the defense of any claim. This implies active participation, open communication, and a willingness to work together to achieve the best possible outcome. This cooperation is essential for building a strong defense and mitigating potential losses.
Furthermore, the franchisee is restricted from settling or compromising any claim without the prior written consent of the Indemnified Parties, especially if the settlement does not include a written release of liability for the Indemnified Parties. Additionally, the franchisee cannot settle any claim in a manner that may adversely affect the Indemnified Parties. These restrictions protect the Indemnified Parties from unfavorable settlements that could negatively impact their interests or reputation.