Moes Southwest Grill
Moe's Southwest Grill offers fast-casual southwestern cuisine in a franchise format. Known for its unique menu items, the brand operates in the casual dining sector.
Moes Southwest Grill franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation ranges from $745,325 to $1,819,050. This estimate includes a mandatory payment of between $30,640 and $99,402 to the franchisor or its affiliates [p.2].
What is the initial franchise fee?
The initial franchise fee is $30,500, which must be paid upon signing the Franchise Agreement and is nonrefundable [p.28, p.143].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is non-refundable and must be paid according to the terms specified in Schedule A [p.143]. There is also a possibility of paying an agreed minimum royalty during periods when the Franchised Business is not in operation [p.149]. For advertising, if required by the company, you must obtain written approval for your grand opening advertising plan at least 30 days prior to its start and implement the approved plan [p.158].
How long is the initial franchise agreement, and can I renew it?
The duration of the initial franchise agreement isn't specified in the excerpts. Additionally, the ability to renew the franchise without fair compensation (such as repurchase or other means for the fair market value) is permitted by the franchisor under certain conditions [p.6(d)], but the general terms regarding renewal are not detailed here.
Can I sell or transfer my franchise, and what does that require?
You can sell or transfer your franchise, but it requires giving advance notice and submitting requested information. Additionally, you must satisfy certain conditions such as paying any outstanding sums, ensuring no default, meeting transferee qualifications, signing necessary agreements, and remaining liable for pre-transfer obligations. The franchisor may also withhold consent on reasonable grounds or subject to reasonable conditions, and a transfer fee equal to 10% of the initial franchise fee is required [p.181].
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the franchise agreement if there is good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and not curing such failure after being given written notice and a reasonable opportunity to cure, which cannot exceed 30 days [p.222].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
The exclusivity of your territory depends on whether you receive an Area of Protection. If granted, it provides certain limited exclusive rights within a specified radius from the Accepted Location [p.199]. However, if no Area of Protection is granted, you will face competition from other franchisees and outlets controlled by the company [p.69]. This isn't specified in the excerpts for all scenarios, so your exact rights depend on the specific terms agreed upon or designated by the franchisor.
What training and ongoing support does the franchisor provide?
The franchisor provides management training through the Management Training Program, which can be conducted online or at designated Certified Training Locations. The franchisor may also authorize certain franchisees who meet specific requirements to provide portions of this program. Additionally, the franchisor offers required support and services under a management agreement with GoTo Foods, although GoTo Foods may delegate some responsibilities. [p.64, p.66]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 29, 2024, there were 502 Traditional Franchises. Out of these, 25 permanently closed during Fiscal Year 2024. This isn't specified in the excerpts for a precise number of terminations, but it indicates that some franchises have been terminated or closed. [p.83]
Does the franchisor share any financial performance or earnings information?
The franchisor may provide financial performance information, but only if there is a reasonable basis for it and it is included in this disclosure document [p.82]. However, the franchisor does not make any representations about past or future financial performance of franchisees or company-owned outlets beyond what is specified in Item 19 [p.84, p.194].
What am I restricted to selling, and where must I buy supplies?
You are restricted to selling only the Approved Products specified by the franchisor, including all menu items and other products required by the Manuals or otherwise. You may have to purchase or lease certain equipment from an Approved Supplier that complies with the franchisor's Standards [p.43]. Additionally, you must buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.4].