What is the definition of a 'Remodel' for a Moes Southwest Grill franchise, and when is it required?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a 'Remodel' involves renovating and modernizing the franchised business to meet the brand's current operational, branding, and architectural design standards. This includes remodeling, refurbishing, renovating, and modernizing the location.
The FDD specifies that franchisees must conduct a Remodel within six months after the tenth anniversary of the opening date. If the franchisee enters a Renewal Term, another Remodel is required within six months after the twentieth anniversary of the opening date. These remodels are at the franchisee's sole expense and must adhere to Moe's Southwest Grill's standards and directives at that time.
The Remodel may include modifications, upgrades, and replacements required in a Refresh, along with more extensive alterations to the restaurant's layout, structure, or design. Examples include redesigning the interior and exterior appearance, interior layout, or adding a drive-thru. Before starting a Remodel, Moe's Southwest Grill will inspect the location and provide a site survey and/or design plan. The franchisee may be required to pay a fee for this service, which can increase annually by no more than the Allowed Adjustment. All plans, designs, furniture, fixtures, equipment, and décor must be approved by Moe's Southwest Grill and may need to be purchased from approved suppliers. Franchisees must also comply with specific sections of the Franchise Agreement related to leasehold improvements, architectural plans, and construction, inspection, and government approvals. The FDD emphasizes that each Remodel may require a significant capital investment, which the franchisee is responsible for incurring, even if the expenditures cannot be amortized over the remaining term.