What fees does Moes Southwest Grill pay to GoTo Foods for management services?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We have entered into a management agreement with GoTo Foods for it to provide our franchisees with the certain support and services that we are obligated to provide under their franchise agreements. GoTo Foods also acts as our franchise sales agent. We have agreed to pay management fees to GoTo Foods for these services. GoTo Foods may delegate certain of these responsibilities to our other affiliates. However, as the franchisor, we will be responsible and accountable to you to make sure that all services we promise to perform under your Franchise Agreement or other agreement you sign with us are performed in compliance with the applicable agreement, regardless of who performs these services on our behalf.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–23)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, Moe's Franchisor SPV LLC has a management agreement with GoTo Foods. Under this agreement, GoTo Foods provides support and services to Moe's Southwest Grill franchisees, fulfilling obligations outlined in the franchise agreements. GoTo Foods also acts as the franchise sales agent for Moe's Southwest Grill. In return for these services, Moe's Franchisor SPV LLC pays management fees to GoTo Foods.
GoTo Foods may delegate some of its responsibilities to other affiliates, but Moe's Franchisor SPV LLC remains responsible for ensuring that all services promised in the Franchise Agreement or other agreements are performed correctly. This arrangement means that while GoTo Foods handles many support functions, Moe's Franchisor SPV LLC ultimately oversees the quality and delivery of these services to its franchisees.
The specific amount or calculation method for these management fees is not detailed in this section of the FDD. A prospective franchisee would need to consult other sections of the FDD or directly ask the franchisor for detailed information about the management fees paid to GoTo Foods. Understanding the structure and amount of these fees is crucial for assessing the overall financial obligations and potential profitability of a Moe's Southwest Grill franchise.