factual

Does the agreement for a Moes Southwest Grill franchise supersede the Franchise Agreement?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Effect of MU Addendum. In the event of any inconsistency between the terms of the MUA Franchise Agreements and the terms of this MU Addendum, the terms of this MU Addendum will supersede and control. In all other respects, the terms of the MUA Franchise Agreements are ratified and confirmed.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, in the event of any inconsistency between the terms of the Multi-Unit Addendum (MUA) Franchise Agreements and the terms of the MU Addendum, the terms of the MU Addendum will take precedence. Otherwise, the terms of the MUA Franchise Agreements are upheld.

This means that if a franchisee signs a Multi-Unit Addendum, which allows them to open multiple Moe's Southwest Grill locations, the terms of that addendum will override any conflicting terms in the standard Franchise Agreement. This is a common practice in franchising, as addenda are often used to modify or supplement the original agreement to address specific circumstances, such as multi-unit development.

For a prospective Moe's Southwest Grill franchisee, this highlights the importance of carefully reviewing all documents, including the Franchise Agreement and any addenda, to understand the full scope of their rights and obligations. It also emphasizes the need to seek legal counsel to clarify any inconsistencies or ambiguities between the different agreements. Franchisees should pay close attention to the terms of the MU Addendum if they plan to expand their Moe's Southwest Grill business to multiple locations, as those terms will govern their multi-unit development.

It is also important to note that the FDD states that if a franchisee fails to comply with any deadlines set forth in the Development Schedule or any other agreement between the franchisee and Moe's Southwest Grill is terminated, Moe's Southwest Grill may terminate the addendum and/or any or all of the remaining MUA Franchise Agreements for which the franchisee has not yet opened a MUA Business. However, failure to comply with any of the deadlines set forth in the Development Schedule, such default shall not be grounds for Moe's Southwest Grill to terminate any MUA Franchise Agreements that are in effect for Franchised Businesses that are already open and operating at the time of such default.

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.