What factors are included in the estimate for leasehold improvements for a Moes Southwest Grill restaurant?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ould review this information, including the footnotes, carefully, conduct your own investigation and seek the help of qualified advisors before making any decision about an initial investment in a Restaurant.
None of these fees or payments are refundable unless otherwise noted below.
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- Initial Franchise Fee. See Item 5.
- Construction and Build Out Costs. This estimate includes fees paid to a general contractor you engage to build out the Restaurant to meet our Standards. Leasehold improvements include but are not limited to HVAC, electrical, carpentry,
floor covering, and painting. The cost of a general contractor will vary widely depending on the size and condition of the premises, whether or not there are any existing and comparable leasehold improvements in the premises, the extent and quality of improvements you desire over and above our minimum requirements, your landlord's cash contribution to the cost of the improvements, and the local costs of material and labor. In certain major metropolitan markets such as Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., costs could be significantly higher than the estimates provided here due to local market rates for materials and labor.
We have included an estimate for an in-line or endcap location and an estimate for a freestanding building. For a freestanding building, the construction costs include additional costs associated with "ground-up" construction (e.g., exterior shell, site work, parking lots, and lighting). The low estimate assumes the developer will supply all sitework beginning five feet outside of the building's walls. The high estimate assumes you will be responsible for both constructing the building and performing the sitework.
You may be able to negotiate tenant improvement allowances from your landlord. The estimate is presented net of estimated tenant im
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 estimate for construction and build-out costs includes fees paid to a general contractor to build the restaurant to meet brand standards. Leasehold improvements include HVAC, electrical work, carpentry, floor covering, and painting.
The cost of a general contractor can vary significantly based on factors such as the size and condition of the premises, whether existing leasehold improvements are present, the desired extent and quality of improvements beyond minimum requirements, the landlord's cash contribution, and local material and labor costs. Costs may be higher in major metropolitan areas like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., due to local market rates.
The estimate includes costs for both in-line/endcap locations and freestanding buildings. For freestanding buildings, construction costs cover "ground-up" construction, including the exterior shell, site work, parking lots, and lighting. The low estimate assumes the developer will handle sitework beginning five feet outside the building, while the high estimate assumes the franchisee is responsible for constructing the building and performing the sitework. The estimate also considers potential tenant improvement allowances from the landlord, with a low estimate assuming a $72,000 allowance and a high estimate assuming no allowance.