factual

Where must arbitration or lawsuits be conducted with Moes Southwest Grill?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

Provisions Section in Franchise Agreement Summary
f. You pay us a Transfer Fee. g. You and your guarantors and owners must sign h. general release and remain liable for pre-transfer obligations
n. Our right of first refusal to acquire your business Section 16.8 of Franchise Agreement We can match any offer for your Restaurant or substantially all interest in your entity.
o. Our option to purchase your business Section 18.4 of Franchise Agreement We may purchase your Goods related to the Restaurant at the fair market value (exclusive of good will) and may purchase your Accepted Location if you own it or your interest in any lease.
p. Your death or disability Section 16.6 of Franchise Agreement Upon 180 days from your death or permanent incapacity you must transfer all rights and interests to buyer that complies with Transfer provisions, except no Transfer Fee will be due.
q. Non-competition covenants during the term of the franchise Section 15.4 of Franchise Agreement No involvement in a competitive business (generally, similar types of businesses that offer products the same or similar to the Approved Products) anywhere. You may not divert or attempt to divert any business or potential business, misuse vendor relationships, or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks and the System.
r. Non-competition covenants after the franchise is terminated or expires Section 15.4.B. of Franchise Agreement For 12 months after expiration or termination, no involvement in a competitive business at the Accepted Location, within 3 miles of your Accepted Location, or within 3 miles of any Restaurant; and no diverting or attempting to divert any business from any Restaurant.
s. Modification of the agreement Sections 8.3, 22.2 and 22.3 of Franchise Agreement No oral modifications, but we can change the Manuals.
t. Integration/merger clause Section 22.2 of Franchise Agreement Only the terms of the Franchise Agreement and related agreements are binding (subject to state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable.
u. Dispute resolution by arbitration or mediation Section 19.1 of Franchise Agreement Most disputes must be resolved by arbitration.
v. Choice of forum Section 19.1 of Franchise Agreement Subject to state law, currently, arbitration or lawsuit must be in the metropolitan area of district court where our principal place of business is located (currently, Georgia).

Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)

What This Means (2025 FDD)

According to Moes Southwest Grill's 2025 Franchise Disclosure Document, any arbitration or lawsuits must be conducted in the metropolitan area of the district court where Moes Southwest Grill's principal place of business is located. Currently, their principal place of business is in Georgia.

This means that if a franchisee has a dispute with Moes Southwest Grill that leads to arbitration or a lawsuit, the proceedings will take place in Georgia, regardless of where the franchise is located. This could create additional expenses for the franchisee, such as travel and legal fees, as they would need to engage representation in Georgia.

It is important for prospective franchisees to consider this forum selection clause carefully. Franchisees should consult with a legal professional to understand the implications of this clause and how it might affect their rights and responsibilities under the Franchise Agreement. This is a fairly standard clause in franchise agreements, but the location can vary.

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.