factual

What additional costs are included in the construction costs for a freestanding Moes Southwest Grill building?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

For a freestanding building, the construction costs include additional costs associated with "ground-up" construction (e.g., exterior shell, site work, parking lots, and lighting). The low estimate assumes the developer will supply all sitework beginning five feet outside of the building's walls. The high estimate assumes you will be responsible for both constructing the building and performing the sitework.

Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–47)

What This Means (2025 FDD)

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the construction costs for a freestanding building include additional expenses associated with "ground-up" construction. These costs specifically cover the exterior shell of the building, site work, parking lots, and lighting. The FDD provides a range of estimates to account for varying levels of responsibility in the construction process.

The low estimate for construction costs assumes that the developer will handle all site work beginning five feet outside the building's walls. In this scenario, the franchisee's financial responsibility is somewhat limited to the building itself. Conversely, the high estimate assumes that the franchisee will be responsible for both constructing the building and performing all site work. This represents a significantly larger financial undertaking for the franchisee.

Prospective franchisees should carefully consider these factors when evaluating the initial investment required for a freestanding Moe's Southwest Grill location. The difference between the low and high estimates for construction costs can be substantial, depending on the specific agreement with the developer and the scope of work the franchisee is responsible for. It is essential to clarify these responsibilities and obtain detailed cost estimates to accurately assess the financial feasibility of the project.

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.