For Moes Southwest Grill, what does the base Program Fee for a Freestyle Dispenser include?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer Initials 4. PROGRAM FEE: Customer will pay Company its then current chain account monthly program fee per Freestyle Dispenser ("Program Fee") plus applicable sales tax. The base Program Fee for any particular type of Freestyle Dispenser will not increase during the term of the Agreement above the then current amount for that particular type of Freestyle Dispenser. The base Program Fee includes the rent for the Freestyle equipment and mechanical reactive service (including parts and, if a Freestyle Dispenser cannot be repaired in the reasonable judgment of Company, the replacement of the Freestyle Dispenser), standard wireless connectivity and standard consumption data. Company agrees that it will offer a base Program Fee throughout the Term and that the base Program Fee will provide the basic functionality to operate a Freestyle Dispenser. The Program Fee will be deducted from earned funding or paid
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, the base Program Fee for a Freestyle Dispenser covers several key components. This fee includes the rent for the Freestyle equipment itself, ensuring franchisees have access to the necessary dispensing technology. Additionally, it encompasses mechanical reactive service, which involves both parts and, if deemed irreparable by the company, the replacement of the Freestyle Dispenser.
Furthermore, the base Program Fee provides standard wireless connectivity, enabling the Freestyle Dispenser to communicate and transmit data. It also includes standard consumption data, giving franchisees insights into usage patterns and inventory management. Moes Southwest Grill commits to maintaining a base Program Fee throughout the term of the agreement, ensuring that franchisees have the basic functionality needed to operate the Freestyle Dispenser without unexpected cost increases.
This structure is beneficial for franchisees as it bundles essential services and equipment costs into a predictable monthly fee. However, franchisees should be aware that the Program Fee does not cover all potential expenses, such as special service calls or the cost of water filtration systems if the franchisee fails to maintain a system meeting company standards. Understanding these inclusions and exclusions is crucial for budgeting and managing the overall cost of operating a Moes Southwest Grill franchise.