What does the construction and build-out costs estimate for Moes Southwest Grill include?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount of Expenditure | Method of | When Payments | To Whom | ||
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $30,500 | $30,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and | $245,000 | $540,700 | As incurred | As arranged | Contractors |
| Build Out Costs – | |||||
| Inline and Endcap 2 |
Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Restaurant to meet our Standards. Leasehold improvements include but are not limited to HVAC, electrical, carpentry,
floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor.
You may be able to negotiate tenant improvement allowances from your landlord. The estimate is presented net of estimated tenant improvement allowances. For the low estimate, we estimated a tenant improvement allowance of $72,000, which is approximately the average tenant improvement allowance that franchisees have reported to us and our affiliates for similar units. For the high estimate, we assumed that a tenant improvement allowance was not available.
We have included an estimate for an in-line or endcap location and an estimate for a freestanding building. For a freestanding building, the construction costs include additional costs associated with "ground-up" construction (e.g., exterior shell, site work, parking lots, and lighting). The low estimate assumes the developer will supply all sitework beginning five feet outside of the building's walls. The high estimate assumes you will be responsible for both constructing the building and performing the sitework.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–47)
What This Means (2025 FDD)
According to the 2025 FDD, the construction and build-out costs for an in-line and endcap Moes Southwest Grill restaurant are estimated to range from $245,000 to $540,700. These costs encompass fees paid to a general contractor for building the restaurant to meet Moes Southwest Grill's standards. Leasehold improvements covered include HVAC, electrical work, carpentry, floor covering, and painting. However, the cost of a general contractor can fluctuate significantly based on factors such as the size and condition of the premises, existing leasehold improvements, the extent and quality of desired improvements, landlord contributions, and local material and labor costs.
The FDD notes that construction costs could be significantly higher in major metropolitan markets like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., due to higher local market rates for materials and labor. The estimate is presented net of estimated tenant improvement allowances. For the low estimate, a tenant improvement allowance of $72,000 was estimated, which is approximately the average tenant improvement allowance that franchisees have reported. The high estimate assumes that a tenant improvement allowance was not available.
For a freestanding building, the construction costs include additional costs associated with "ground-up" construction (e.g., exterior shell, site work, parking lots, and lighting). The low estimate assumes the developer will supply all sitework beginning five feet outside of the building's walls. The high estimate assumes you will be responsible for both constructing the building and performing the sitework. Prospective franchisees should carefully consider these variables and conduct thorough due diligence to estimate their actual construction and build-out costs accurately.