Where can I find the terms and conditions of the Dispensing Equipment Lease for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT 4 DISPENSING EQUIPMENT LEASE
- 1. LEASE AGREEMENT AND TERM. Company hereby leases to Customer all beverage dispensers provided to Customer ("Equipment"), subject to the terms and conditions set forth in this Lease. Unless otherwise agreed in writing, the Equipment will also include, where applicable, all permanent merchandising, menu boards, refrigeration units, ice makers and water filtration equipment provided by Company. Each piece of Equipment is leased commencing on its installation date (the "Commencement Date"). Customer may request the removal of any Equipment upon thirty (30) days prior written notice to Company. Removal of Equipment will not affect the term of any agreement between the parties. If this Lease is terminated with respect to any piece of Equipment for any reason prior to 100 months from the Commencement Date for that piece of Equipment, Customer will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation and (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment. Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been returned to Company and will survive the expiration or termination of any agreement into which this Lease is incorporated.
- 2. RENT FOR EQUIPMENT. All rent due for Legacy Dispensers will be due monthly. At Company's discretion, Company may utilize funds due Customer to offset amounts due Company under this Lease. Rent for Freestyle Dispensers is included in the Program Fee (see Exhibit 5).
- Customer Initials 3. TITLE TO THE EQUIPMENT. Title to the Equipment is, and will at all times remain,
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the terms and conditions for the Dispensing Equipment Lease are detailed in Exhibit 4. This lease agreement outlines the terms under which Moe's Southwest Grill franchisees can lease beverage dispensers from the company.
The lease covers various aspects, including the equipment included (beverage dispensers, merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment), the lease term commencement date (installation date), and conditions for equipment removal. If a franchisee terminates the lease before 100 months from the commencement date, they may incur unbundling costs, covering removal, remanufacturing, installation, and non-serialized parts.
The document specifies that rent for Legacy Dispensers is due monthly, while rent for Freestyle Dispensers is included in the Program Fee, detailed in Exhibit 5. The equipment remains the property of the company, and the lease terms remain effective until the equipment is returned. The agreement also states that it constitutes the entire agreement between the parties, superseding prior agreements, but acknowledges that other agreements may take precedence if conflicts arise and are agreed to in writing.