What fees might Moes Southwest Grill charge a franchisee if a relocation request is approved?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If we approve your request to relocate, in our sole discretion, then (i) the Site Agreement for the new location must comply with the Franchise Agreement, (ii) you must de-identify the former site, (iii) we may charge you a Relocation Fee (see Item 6), (iv) we may require you to pay an agreed minimum royalty to us during the period in which the Restaurant is not in operation, and (v) we may require you to sign our then-current Franchise Agreement (which may have materially different terms than your existing Franchise Agreement) or an amendment to your existing Franchise Agreement. If the term of the Lease for the new location extends beyond the term of your Franchise Agreement, we may, in our sole discretion, extend the term of your existing or new Franchise Agreement to match the term of the Lease for the new location, provided you will be required to pay the Relocation Extension Fee (see Item 6).
Source: Item 12 — Territory (FDD pages 68–72)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, if a franchisee's request to relocate their restaurant is approved, Moes Southwest Grill may impose certain fees and requirements. Specifically, Moes Southwest Grill may charge a Relocation Fee, as detailed in Item 6 of the FDD. Additionally, during the period the restaurant is not operational due to relocation, Moes Southwest Grill may require the franchisee to pay an agreed minimum royalty.
Furthermore, Moes Southwest Grill might require the franchisee to sign the then-current Franchise Agreement, which could contain terms that differ significantly from the existing agreement. Alternatively, Moes Southwest Grill may require an amendment to the existing Franchise Agreement. If the lease term for the new location extends beyond the current Franchise Agreement's term, Moes Southwest Grill has the option to extend the agreement to match the lease term, but this would require the franchisee to pay a Relocation Extension Fee, also detailed in Item 6.
In practical terms, a franchisee considering relocation needs to be aware of these potential costs and changes to their franchise agreement. The Relocation Fee, minimum royalty payments during downtime, and potential Relocation Extension Fee can add significantly to the financial burden of moving a Moes Southwest Grill restaurant. Moreover, the possibility of having to agree to a new Franchise Agreement with different terms introduces uncertainty and risk, as the new terms might be less favorable than the original agreement. Franchisees should carefully review Item 6 of the FDD and discuss these potential relocation-related fees and requirements with Moes Southwest Grill before making any decisions.