What is the definition of 'Designated Bank Account' for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
As used herein, the term "Designated Bank Account" means the bank account on file with Franchisor for EFT payments required under the Franchise Agreement or Manuals.
Franchisee is responsible for maintaining sufficient funds in the Designated Bank Account for all Comprehensive Support Fees due under this Agreement, in addition to any amounts drafted by EFT under the Franchise Agreement and the Manuals.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a 'Designated Bank Account' is defined as the bank account the franchisee has on file with Moe's Southwest Grill for Electronic Funds Transfer (EFT) payments. These EFT payments are required under both the Franchise Agreement and the Manuals.
This definition is important for prospective franchisees because it clarifies where Moe's Southwest Grill will withdraw funds for Comprehensive Support Fees. The franchisee is responsible for ensuring that the Designated Bank Account contains sufficient funds to cover these fees, as well as any other amounts drafted via EFT under the Franchise Agreement and the Manuals.
It is critical that a Moe's Southwest Grill franchisee maintains adequate funds in this account to avoid any penalties, disruptions in service, or potential breaches of the franchise agreement. Franchisees should also keep this information updated with Moe's Southwest Grill to ensure smooth and timely transactions.