What expenses are included in the 'Additional Funds 3 Months' estimate for a Moes Southwest Grill restaurant?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Additional Funds 3 Months. This estimates the additional funds you may need to cover expenses you will incur before your Restaurant opens and in its first three months of operation. These expenses may include, without limitation, employee salaries, wages, and benefits, payroll taxes (including payroll to cover the preopening training period for your staff), Royalty Fees, Advertising Contributions, additional advertising expenses, additional inventory, miscellaneous supplies and equipment, rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items. We have based these figures on our experience franchising Restaurants and our affiliate's experience opening and operating Restaurants. You may incur other categories of expenses or expenses in excess of this estimate.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–47)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the 'Additional Funds 3 Months' estimate covers expenses incurred before the restaurant opens and during its initial three months of operation. These expenses, with a low estimate of $25,000 and a high estimate of $53,000, may include employee salaries, wages, and benefits, as well as payroll taxes, which also cover the preopening training period for the staff.
This estimate also accounts for ongoing fees such as Royalty Fees and Advertising Contributions, along with additional advertising expenses to promote the new Moes Southwest Grill location. Franchisees should also budget for additional inventory, miscellaneous supplies and equipment, rent, bank charges, state tax and license fees, deposits, prepaid expenses, and other miscellaneous items during this period.
The FDD indicates that these figures are based on the franchisor's experience in franchising restaurants and their affiliate's experience in opening and operating restaurants. However, the document also cautions that franchisees may incur other categories of expenses or expenses exceeding this estimate. Therefore, it is crucial for prospective franchisees to carefully review these estimates, consider their specific circumstances, and potentially consult with existing franchisees to gain a more accurate understanding of the potential costs involved during the initial months of operation.