Under what circumstances does a Moes Southwest Grill franchisee have to pay an indemnification fee?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
on, times the lesser of the remainder of term of the Franchise Agreement or 36 months. | | Appraiser's Fee | 50% of appraiser's fee. | On invoice | You must pay this fee only if we elect to | | | | | purchase your assets on termination or | | | | | expiration of the Franchise Agreement and |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| we cannot agree with you on the purchase price. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are required to indemnify the franchisor from certain losses and expenses. The specific amount for this indemnification is based on Moe's Southwest Grill's costs and expenses. This fee is due on invoice.
In practical terms, this means that if a third party sues Moe's Southwest Grill due to the franchisee's actions or negligence, the franchisee may be responsible for covering Moe's Southwest Grill's legal costs and any resulting damages. This could include situations such as foodborne illness outbreaks caused by the franchisee's restaurant, or injuries sustained by customers due to unsafe conditions at the franchise location.
The franchisee should carefully review the Franchise Agreement to fully understand the scope of the indemnification clause and the types of claims or liabilities that could trigger this obligation. It is important for prospective franchisees to assess their risk management strategies and insurance coverage to ensure they are adequately protected against potential indemnification claims. Franchisees should consult with a legal professional to fully understand their obligations under the Franchise Agreement.