What are the 'Bottle/Can Beverage Permitted Exceptions' at Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
A line of Bottler Bottle/Can Beverages as mutually agreed to by the parties will be made available for sale at each Covered Outlet, subject to availability from Bottler. All Bottle/Can Beverages served in the Covered Outlets will be Bottler Bottle/Can Beverages; provided, however, that the Bottle/Can Beverage Permitted Exceptions may be served in each Covered Outlet. Company will have the right of first negotiation and refusal with respect to the sale of Bottle/Can Beverages to the Covered Outlets. This right of first negotiation and refusal will mean that if Customer wishes to serve Bottle/Can Beverages in the Covered Outlets, Customer will offer Company the opportunity to present a Bottle/Can Beverage marketing program to Customer, and the parties will have a period of 60 days to negotiate the terms of the program. If the parties fail to reach an agreement on a Bottle/Can Beverage program within such 60 day period, Customer shall be free to negotiate with other parties representing other brands. If, however, Customer receives a bona fide offer from another party regarding a Bottle/Can Beverage program, which program the Customer intends to accept, then Customer shall be obligated to communicate such offer to Company, whereupon Company shall have 60 days from the date of such communication to offer Customer a competitive Bottle/Can Beverage program and if the parties fail to reach an agreement on a Bottle/Can Beverage program within a following 60 day period, Customer shall be free to accept the offer of the other party.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a franchisee is allowed to serve 'Bottle/Can Beverage Permitted Exceptions' at each Covered Outlet. The FDD defines 'Bottle/Can Beverage' as any beverage, including a pre-mix beverage, in prepackaged, ready-to-drink form in bottles, cans, or other factory-sealed containers. The 'Bottle/Can Beverage Permitted Exceptions' are defined as Competitive Beverages that are Bottle/Can Beverages. 'Competitive Beverage' means any Beverage that is not a Company Beverage.
This means that while Moe's Southwest Grill franchisees are generally required to serve Bottler Bottle/Can Beverages, they are permitted to serve some competitive beverages in bottles or cans. However, Company will have the right of first negotiation and refusal with respect to the sale of Bottle/Can Beverages to the Covered Outlets. If the Customer wishes to serve Bottle/Can Beverages in the Covered Outlets, Customer will offer Company the opportunity to present a Bottle/Can Beverage marketing program to Customer, and the parties will have a period of 60 days to negotiate the terms of the program. If the parties fail to reach an agreement on a Bottle/Can Beverage program within such 60 day period, Customer shall be free to negotiate with other parties representing other brands. If, however, Customer receives a bona fide offer from another party regarding a Bottle/Can Beverage program, which program the Customer intends to accept, then Customer shall be obligated to communicate such offer to Company, whereupon Company shall have 60 days from the date of such communication to offer Customer a competitive Bottle/Can Beverage program and if the parties fail to reach an agreement on a Bottle/Can Beverage program within a following 60 day period, Customer shall be free to accept the offer of the other party.
This exception allows franchisees some flexibility in catering to local preferences or offering alternatives to the standard beverage selection. However, the prices for Bottler Bottle/Can Beverages are set at the sole discretion of Bottler. Bottler will charge no more than price ceilings for Bottler Bottle/Can Beverages to be negotiated by the parties and if mutually agreed added to this Agreement through amendment. It is important for prospective franchisees to understand the specific terms and conditions related to these exceptions, including any limitations or requirements set by Moe's Southwest Grill or its beverage suppliers.