What decision-making authority must the Primary Contact for a Moes Southwest Grill restaurant have?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
You are required to devote your best efforts to the proper and effective operation of the Restaurant. You (if you are an individual) and your Owners (if you are an Entity) are not required to participate in the actual operation of the Restaurant but may, with our consent, serve as the Primary Contact and/or a Manager. However, we do not recommend an investment in a Restaurant for investors interested in an absentee management business.
You must appoint a Primary Contact who will be responsible for, and have decision-making authority regarding, the Restaurant and its operation. You may not appoint, remove, or replace the Primary Contact without our prior written approval. Your Primary Contact must (i) hold a direct or indirect, legal, or beneficial interest of 5% or more in your Entity or (ii) hold a direct or indirect, legal, or beneficial interest in your Entity and have a written agreement with you that provides for a means that such Primary Contact will increase such interest to 5% or more in your Entity. Your Primary Contact must successfully complete Primary Contact Training to our satisfaction.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill FDD, the Primary Contact must be responsible for, and have decision-making authority regarding, the restaurant and its operation. Moe's Southwest Grill retains the right to rely upon the Primary Contact for these purposes. The Primary Contact must also directly supervise the operations of the restaurant.
In order to qualify as a Primary Contact, the individual must either hold a direct or indirect, legal, or beneficial interest of 5% or more in the franchisee's entity, or hold a direct or indirect, legal, or beneficial interest in the entity and have a written agreement in place that ensures they will increase their interest to 5% or more. Additionally, the Primary Contact must be accepted by Moes Southwest Grill and successfully complete Primary Contact Training to the franchisor's satisfaction.
This requirement ensures that someone with a vested interest and sufficient authority is actively managing the Moes Southwest Grill franchise, which helps maintain brand standards and operational efficiency. Prospective franchisees should carefully consider who they designate as the Primary Contact, ensuring that this person meets the ownership/agreement criteria and is prepared to undergo the necessary training and fulfill the required responsibilities.