Can Moes Southwest Grill add or change Approved Suppliers at any time?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
se items. The availability and terms of financing will depend on factors like the availability of financing generally, your credit worthiness, collateral you pledge, policies of your lending institution, and economic conditions in your area.
ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
Required Purchases. We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, "Goods") that you purchase for resale or purchase or lease for use in your Restaurant: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from Approved Suppliers; (iv) be purchased or leased only from a single source that we designate (which may include us or our affiliates or a buying cooperative organized by us or our affiliates); and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–51)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, Moes Southwest Grill retains the right to modify the list of Approved Suppliers whenever they deem necessary. This means that Moes Southwest Grill franchisees are required to purchase specific items, such as products, ingredients, supplies, furniture, fixtures, equipment, and services, from suppliers that Moes Southwest Grill has approved.
Moes Southwest Grill can add or change these Approved Suppliers at any time. This gives Moes Southwest Grill significant control over the supply chain and ensures that franchisees meet the brand's standards. While this can help maintain consistency across all Moes Southwest Grill locations, it also means that franchisees have limited autonomy in sourcing their supplies and must adapt to any changes Moes Southwest Grill makes to the Approved Supplier list.
For a prospective franchisee, this underscores the importance of understanding the implications of these required purchases. It is estimated that purchases from Approved Suppliers will constitute approximately 85% of the initial establishment costs and about 90% of the ongoing operational expenses for a Moes Southwest Grill restaurant. Therefore, any changes to Approved Suppliers or purchasing programs could directly impact a franchisee's costs and profitability. Franchisees should discuss with Moes Southwest Grill the typical frequency of supplier changes and the potential impact on their business to better prepare for these eventualities.