conditional

Does the Moes Southwest Grill franchisee need the franchisor's consent to settle a claim?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

This Agreement shall at all times be governed by the laws of the State of Georgia. Should there be a dispute between Company and Customer relating in any way to the Agreement, the breach of the Agreement, or the business relationship of the parties, the parties agree that they will make a good faith effort to settle the dispute in an amicable manner. If the parties are unable to settle the dispute through direct discussions, at that time they will attempt to settle the dispute by mediation administered by the American Arbitration Association (the "AAA"). If the parties do not agree to pursue mediation or if that procedure is unsuccessful, the dispute will be resolved by binding arbitration administered by AAA in accordance with its Commercial Arbitration Rules using a single arbitrator, at a location selected by AAA based on the convenience of the parties and the location of potential witnesses. The arbitrator shall have the authority to award specific performance and any other appropriate remedies including interim injunctive relief to maintain the status quo pending the conclusion of arbitration. The prevailing party shall also be entitled to recover its reasonable attorneys' fees and other costs and expenses of litigation. A judgment on the award of the arbitrator may be entered in any court with jurisdiction. The foregoing will not preclude any party from bringing an action for injunction in a court of competent jurisdiction for breach of the other party's confidentiality obligations.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the FDD does not specify whether a Moes Southwest Grill franchisee needs the franchisor's consent to settle a claim. The document includes the franchise agreement, addenda for specific states like Maryland and Illinois, and other related agreements, but it does not explicitly address the settlement of claims and whether franchisor consent is required.

However, the Franchise Agreement does state that Georgia law governs the agreement. It also outlines dispute resolution processes, including mediation and arbitration, for resolving disputes between the company and the franchisee. These processes do not mention the franchisor's consent for settling claims.

Prospective franchisees should seek clarification from Moes Southwest Grill regarding the process for settling claims and whether the franchisor's consent is needed. This information is crucial for understanding the franchisee's autonomy in managing legal and financial risks associated with the business.

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.