What conditions must a franchisee of Moes Southwest Grill meet to have a relocation request approved?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
n-current sublease administration fee, which may be increased in any calendar year by no more than the Allowed Adjustment. However, unless we have agreed otherwise in a separate written agreement, we shall have no obligation to enter into a sublease with you for any location. If we and you are parties to a sublease and we elect to assign the master lease to you, you must execute any and all documents required by the landlord to facilitate such assignment and cooperate with our efforts to obtain our release. Any real estate and improvement costs associated with the development of the Accepted Location will be your responsibility.
5.5 Relocation of the Franchised Business.
A. Relocation Request. You may relocate the Accepted Location of the Franchised Business at your expense, if, prior to closing the Franchised Business, you submit a site acceptance request (in the form we provide to you) for your new Proposed Location and obtain our acceptance of the relocation to the Proposed Location. A relocation includes any change of
the location of the Franchised Business within a mall, facility, or building to a new location within the same mall, facility, or building. We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
- B. Relocation Conditions. If we approve, in our sole discretion, the relocation of the Franchised Business under this Section 5.5, you agree to comply with the following conditions:
- (i) the new location will be considered the "Accepted Location" as used in this Agreement;
- (ii) all Site Agreements you enter into to secure the new location must comply with Section 5.4 (Site Acquisition);
- (iii) you must make or cause to be made to the former Accepted Location such changes in the signs and interior and exterior of the former Accepted Location so as to effectively distinguish such location from any other Business;
- (iv) we may charge you a relocation fee equal to 10% of the then-current Initial Franchise Fee to cover costs and expenses incurred by us or our affiliates in connection with any such acceptance, evaluation, and relocation of the Franchised Business;
- (v) we may require you to pay an agreed minimum royalty to us during the period in which the Franchised Business is not in operation (if any); and
- (vi) we may require you to sign our then-current form of franchise agreement to replace this Agreement (the "New Franchise Agreement") or any other documents we may require to amend this Agreement. You acknowledge and agree that the New Franchise Agreement may contain terms that are materially different from this Agreement, but you will not be required to pay another initial franchise fee if you sign a New Franchise Agreement.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, a Moes Southwest Grill franchisee may relocate their business if they meet certain conditions. First, the franchisee must submit a site acceptance request for the new proposed location before closing the existing franchised business. This request must be in a form provided by Moes Southwest Grill, and the relocation to the proposed location requires their acceptance. A relocation includes moving the franchise within the same mall, facility, or building.
However, Moes Southwest Grill is under no obligation to approve the relocation. Approval is at their sole discretion and will not be granted unless the franchisee is in full compliance with all terms and conditions of the Franchise Agreement. Additionally, the franchisee must demonstrate that they have sufficient funds available to cover the relocation expenses and to construct a new Moes Southwest Grill according to the company's current design standards.
If Moes Southwest Grill approves the relocation, the franchisee must adhere to additional conditions. The new location will be designated as the "Accepted Location" under the agreement. All site agreements for securing the new location must comply with the site acquisition terms outlined in the franchise agreement. The franchisee is responsible for altering the former location to effectively distinguish it from any Moes Southwest Grill business. Moes Southwest Grill may charge a relocation fee of 10% of the then-current Initial Franchise Fee. They may also require the franchisee to pay a minimum royalty during any period when the business is not operational and may require the franchisee to sign the then-current form of franchise agreement, which may contain materially different terms, without paying another initial franchise fee. If the lease term for the new location extends beyond the original term, Moes Southwest Grill may extend the agreement, requiring a relocation extension fee of $1,500 multiplied by the number of years between the original expiration date and the new lease expiration.