According to the Moes Southwest Grill FDD, what are 'Approved Suppliers'?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Before we approve a Supplier, we will require the following, among other things: (i) the Supplier must demonstrate that it is able to supply the item or services to you in accordance with our Standards, including our standards as to the artwork and text on the items; (ii) if the Supplier is to receive access to any of our Confidential Information (defined below), Trade Secrets (defined below), or logos, the Supplier must sign a confidentiality agreement and/or our standard form license agreement we prepare; (iii) the Supplier must demonstrate that it is in good standing in the business community with respect to its financial soundness and the reliability of its products or services; and (iv) the Supplier must sign all agreements we require our suppliers to sign at that time.
- 7.4 Revocation of Approval.
We reserve the right to reinspect the facilities and Goods of any Approved Supplier and to revoke approval of the Goods or Supplier if any fail to meet any of our then-current criteria.
If you receive a notice of revocation of approval, you agree to cease purchasing or leasing the formerly-approved Goods or any Goods from the formerly-approved Supplier and you must dispose of your remaining inventory of the formerly-approved Goods as we direct.
If we revoke approval of a formerly-approved Approved Product that you have been selling to customers or service that you have been offering to customers, you must immediately discontinue offering the service and may continue to sell the product only from your existing inventory for up to 30 days following our disapproval.
We have the right to shorten this period if, in our opinion, the continued sale of the product would prove detrimental to our reputation.
After the 30-day period, or such shorter period that we may designate, you must dispose of your remaining formerly-approved inventory as we direct.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, an 'Approved Supplier' is a supplier that Moe's Southwest Grill has approved to provide goods and services to franchisees. Before Moe's Southwest Grill approves a supplier, the supplier must meet specific requirements.
The supplier must demonstrate its ability to supply items or services according to Moe's Southwest Grill's standards, including standards for artwork and text. If the supplier gains access to confidential information, trade secrets, or logos, it must sign a confidentiality agreement or Moe's Southwest Grill's standard license agreement. The supplier must also be in good standing in the business community regarding financial soundness and the reliability of its products or services, and must sign all agreements that Moe's Southwest Grill requires its suppliers to sign at that time.
Moe's Southwest Grill retains the right to reinspect the facilities and goods of any approved supplier and can revoke approval if the supplier fails to meet the current criteria. If approval is revoked, a franchisee must stop purchasing or leasing goods from the supplier and dispose of any remaining inventory as directed by Moe's Southwest Grill. If an approved product or service is disapproved, the franchisee must immediately stop offering the service and can only sell the existing inventory of the product for up to 30 days, or a shorter period if Moe's Southwest Grill deems it necessary to protect its reputation. After the designated period, the franchisee must dispose of any remaining inventory as directed.