What costs are associated with the Refresh and Remodel obligations for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
e expense and in accordance with our then-current Standards and directives, refresh, refurbish, and renovate the Franchised Business to meet our then-current operational and branding Standards (a "Refresh"). Generally, a Refresh will require you to add, update, and/or replace components of the Franchised Business (including merchandising elements, graphics, paint or wall coverings, menu boards, interior and exterior signage, kitchen equipment, drive-thru equipment, Computer System components, and other furniture, fixtures, equipment, and décor that we may specify in our sole discretion) to meet our then-current Standards without significantly altering your Franchised Business' layout or structure.
- B. Remodel. Within six months after the tenth and (if you are entering into a Renewal Term) twentieth anniversaries of the Opening Date, you must, at your sole expense and in accordance with our then-current Standards and directives, remodel, refurbish, renovate, and modernize the Franchised Business to meet our then-current operational, branding, and architectural design Standards (a "Remodel"). Generally, a Remodel may include all of the modifications, upgrades, and replacements required in a Refresh, plus other more extensive alterations to your Franchised Business' layout, structure, or design, such as redesigning the interior and exterior appearance and interior layout of the Franchised Business or adding a drivethru to a Franchised Business.
- C. Process for Refreshes and Remodels. Before you begin a Refresh or a Remodel, we, our affiliate, or our designee will in-person or virtually inspect your Franchised Business and produce a site survey and/or design plan that will comply with our then-current Standards. We may require you to pay us, our affiliate, or our designee our then-current fee for producing such site survey and/or design plan, which may be increased in any calendar year by no more than the Allowed Adjustment. All plans, designs, furniture, fixtures, equipment, and décor related to a Refresh or a Remodel must be approved by us in writing, must conform to our then-current Standards and applicable Laws, and, if we so require, must be purchased from Approved Suppliers we designate or approve in writing.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, franchisees are responsible for the costs associated with refreshes and remodels of their franchised businesses. Moe's Southwest Grill requires franchisees to conduct a Refresh within six months after the fifth and fifteenth anniversaries of the opening date. A Remodel is required within six months after the tenth and twentieth anniversaries of the opening date, or upon renewal.
The costs include those related to meeting the then-current operational, branding, and architectural design standards. These expenses cover modifications, upgrades, and replacements necessary to keep the franchise up-to-date. Before starting a Refresh or Remodel, Moe's Southwest Grill may inspect the franchise location and create a site survey or design plan, for which the franchisee may be required to pay a fee. The fee can be increased each calendar year, but by no more than the Allowed Adjustment.
All plans, designs, furniture, fixtures, equipment, and décor must be approved by Moe's Southwest Grill and conform to their standards and applicable laws. Franchisees may be required to purchase these items from approved suppliers. The FDD emphasizes that Refreshes and Remodels may require a significant capital investment, and franchisees are responsible for covering all capital expenditures, even if those expenditures cannot be amortized over the remaining term of the franchise agreement.