Can Moes Southwest Grill convert other businesses to Moes Southwest Grill restaurants outside of my Area of Protection after acquiring them?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- (v) We and/or our affiliates may acquire, be acquired by, or merge with another entity with existing businesses or franchises that are similar to or competitive with the Restaurants anywhere (including inside and outside the Area of Protection (if any)) and (a) convert the other businesses to be Restaurants operating under the Proprietary Marks and the System (except inside your Area of Protection (if any)), (b) permit the other businesses to continue to operate under another name anywhere (including inside your Area of Protection (if any)), and/or (c) permit the businesses to operate under another name and convert your Restaurant and other existing Restaurants to such other name.
Source: Item 12 — Territory (FDD pages 68–72)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, Moe's Southwest Grill and its affiliates retain specific rights regarding the establishment and operation of restaurants, including the ability to convert other businesses into Moe's Southwest Grill restaurants. Specifically, Moe's Southwest Grill can acquire or merge with other entities that have existing businesses or franchises similar to or competitive with Moe's Southwest Grill restaurants. Outside of a franchisee's Area of Protection, Moe's Southwest Grill has the right to convert these acquired businesses to operate under the Moe's Southwest Grill Proprietary Marks and System.
This means that a Moe's Southwest Grill franchisee's Area of Protection is crucial. If a franchisee has an Area of Protection, Moe's Southwest Grill cannot convert other businesses to Moe's Southwest Grill restaurants within that protected area. However, outside of this area, Moe's Southwest Grill retains the right to convert existing businesses to Moe's Southwest Grill restaurants, potentially increasing competition in the general vicinity of the franchisee's location.
This clause also allows Moe's Southwest Grill to permit acquired businesses to continue operating under another name, even within a franchisee's Area of Protection, or to convert existing Moe's Southwest Grill restaurants to operate under a different name. These rights provide Moe's Southwest Grill with significant flexibility in managing its brand and expanding its footprint, but franchisees should be aware of the potential for increased competition or changes to the brand identity in the long term.