Where can the Consumer Price Index (CPI) be found for Moes Southwest Grill pricing calculations?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- b. Company agrees that the over-all pricing for the ingredients available for purchase in the 48 contiguous United States and the District of Columbia in a given calendar year except for HFCS Sweetener will not increase in the next calendar year by more than the pricing at the end of the given year increased by the greater of: (i) 4%; or (ii) a percentage determined for that calendar year by the following calculation based upon changes to the Consumer Price Index for Food Away From Home as published by the Department of Labor ("CPI"). See Note in Exhibit 5-2. Company will calculate the difference between (i) the monthly average of the CPI for the most recent prior October through September period ("CPI Most Recent Average") and (ii) the second most recent October through September period ("CPI Second Most Recent Average"). Company will then calculate what the percentage of this difference is as compared to the CPI Second Most Recent Average. See Example 1 in Exhibit 5-2. The published CPI can be found at: http://www.bls.gov/cpi/tables.htm. If the Department of Labor discontinues publishing the CPI or materially changes the CPI, then Company will establish a different price
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the Consumer Price Index (CPI) for Food Away From Home, which is used in calculating potential price increases for ingredients, is published by the Department of Labor. The specific website where this information can be found is http://www.bls.gov/cpi/tables.htm. This index is a key factor in determining the maximum allowable increase in ingredient prices, helping franchisees anticipate and manage their costs.
Moe's Southwest Grill uses the CPI to calculate the maximum annual price increase for ingredients (excluding HFCS Sweetener) in the 48 contiguous United States and the District of Columbia. The company calculates the difference between the monthly average CPI for the most recent prior October through September period and the second most recent October through September period. The percentage of this difference compared to the CPI of the second most recent period determines the allowable price increase.
For example, as illustrated in the FDD, if the CPI average from October 2014 through September 2015 was 235.07, and the average from October 2013 through September 2014 was 232.49, the percentage difference would be 1.1%. In this case, Moe's Southwest Grill would not increase ingredient pricing by more than 4% since that figure is greater than the CPI increase. This mechanism protects franchisees from excessive price hikes, as the increase is capped at either 4% or the CPI change, whichever is greater. However, Moe's Southwest Grill retains the right to modify this pricing methodology if the Department of Labor discontinues or materially changes the CPI.