factual

What is the franchisee's sole remedy if Moes Southwest Grill breaches the franchise agreement?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

  • n. Limited Recourse. The parties agree that any remedy or recourse available under or related to this Agreement is strictly limited to the parties to this Agreement. No past, present or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent or attorney of either party shall have any liability under this Agreement of or for any claim based on, in respect of, or by reason of, the transactions contemplated hereby and thereby. The foregoing is not intended to discharge either party from its liability for any breach of this Agreement by its directors, officers, employees, consultants and agents.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

Based on the 2025 Moe's Southwest Grill Franchise Disclosure Document, the parties involved in the franchise agreement acknowledge that any available remedy or recourse is strictly limited to the parties directly involved in the agreement. This means that only Moe's Southwest Grill and the franchisee can pursue legal action or seek compensation for any issues arising from the agreement.

Specifically, the agreement states that no past, present, or future director, officer, employee, incorporator, member, partner, stockholder, subsidiary, affiliate, controlling party, entity under common control, ownership or management, vendor, service provider, agent, or attorney of either party shall have any liability under the agreement. This provision protects these individuals and entities from being held responsible for claims related to the franchise agreement. However, this does not discharge either party from its liability for any breach of the agreement by its directors, officers, employees, consultants, and agents.

In practical terms, this "limited recourse" clause means that a franchisee cannot sue individual executives or related companies if Moe's Southwest Grill breaches the agreement. The franchisee's legal options are limited to pursuing action against the franchisor entity itself. This is a fairly common provision in franchise agreements, designed to protect individuals and related entities from being drawn into disputes. Prospective franchisees should be aware of this limitation and consider its implications when evaluating the franchise opportunity.

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.