What is the definition of 'Designated Bank Account' for Moes Southwest Grill franchisees?
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 the 2025 Moe's Southwest Grill Franchise Disclosure Document, the 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 required under the Franchise Agreement or the Manuals. This account is used by Moe's Southwest Grill to draft payments for Comprehensive Support Fees.
As a Moe's Southwest Grill franchisee, it is your responsibility to ensure that there are sufficient funds in the Designated Bank Account to cover all Comprehensive Support Fees, as well as any other amounts that may be drafted via EFT according to the Franchise Agreement and the Manuals. This means franchisees must proactively manage their account balances to avoid any payment issues.
If a Moe's Southwest Grill franchisee fails to maintain sufficient funds in the Designated Bank Account, Moe's Southwest Grill has the right to charge the franchisee for any return costs incurred by their bank, along with an administrative fee to cover the costs of addressing the nonpayment. This is in addition to any interest that may be charged on the overdue amount. Therefore, maintaining adequate funds in the designated account is crucial to avoid these additional charges and potential disruptions to the franchise operation.