What is the difference between a 'Refresh' and a 'Remodel' for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
t, at your sole 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. For each Remodel, you must comply with Sections 6.1 (Leasehold Improvements), 6.2 (Architectural Plans), and 6.3 (Construction, Inspection, and Government Approvals) of this Agreement. You acknowledge that each Refresh or Remodel may require you to make a significant capital investment into your Franchised Business. You agree to incur, without limitation, any capital expenditures required in order to comply with this obligation and our requirements (even if those expenditures cannot be amortized over the remaining Term).
- D. Requirements Are Not Exclusive. The requirements set forth in this Section are in addition to, and do not limit, your obligation to add, update, and/or replace components of the Franchised Business from time to time as specified in other Sections of this Agreement, including Section 8.3 (Changes to the Standards and the Manuals) and Section 12.5 (Continuing Maintenance).
12.7 Your Participation; Manager.
- A. Participation and Managers.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, both a 'Refresh' and a 'Remodel' are required to keep the franchise up-to-date with current standards. A 'Refresh' is required within six months after the fifth and fifteenth anniversaries of the opening date. It generally involves adding, updating, or replacing components of the franchised business to meet current operational and branding standards without significantly altering the layout or structure. This includes items like merchandising elements, graphics, paint, menu boards, signage, kitchen equipment, computer system components, furniture, fixtures, and décor.
A 'Remodel' is required within six months after the tenth and twentieth anniversaries of the opening date (and any Renewal Term). A 'Remodel' may include all modifications, upgrades, and replacements required in a 'Refresh,' but also involves more extensive alterations to the franchise's layout, structure, or design. This can include redesigning the interior and exterior appearance and interior layout, or adding a drive-thru.
Before starting either a 'Refresh' or a 'Remodel,' Moe's Southwest Grill, its affiliate, or its designee will inspect the franchised business and produce a site survey and/or design plan to comply with current standards. The franchisee may be required to pay a fee for this service, which can be increased annually by no more than the Allowed Adjustment. All plans, designs, furniture, fixtures, equipment, and décor must be approved in writing by Moe's Southwest Grill and conform to current standards and applicable laws. For a 'Remodel,' franchisees must also comply with specific sections of the Franchise Agreement related to leasehold improvements, architectural plans, and construction, inspection, and government approvals.
Both 'Refreshes' and 'Remodels' may require a significant capital investment from the franchisee. The franchisee is responsible for incurring all necessary capital expenditures to comply with these obligations, even if those expenditures cannot be amortized over the remaining term of the agreement. This highlights the importance of long-term financial planning and budgeting for franchisees to maintain and update their Moe's Southwest Grill locations as required by the franchise agreement.