What form of agreement must the transferee of a Moes Southwest Grill franchise sign?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ement with us, our affiliates, or any suppliers without curing such default within the applicable cure period, and (iii) in our sole judgment, have been approved to develop and operate additional franchises.
- F. Notwithstanding when the Franchised Business was last remodeled, the transferee agrees in writing that it will, at its expense, upgrade, and remodel the Franchised Business to conform to our then-current Standards for quality and appearance and trade dress within the time we reasonably specify; provided, however, if the Franchised Business conforms to our then-current Standards for appearance, the transferee will only address all items identified in the last quality assurance inspection, within the time we reasonably state.
- G. The transferee signs our then-current form of franchise agreement and all other then-current related agreements as we require of new franchisees generally provided, however, the transferee will not be required to pay the initial franchise fee stated in the new franchise agreement and the term of the new franchise agreement will expire on the expiration date of the Term of this Agreement. The terms of our then-current franchise agreement, including the fees, may be materially different than the terms of this Agreement.
- H. The transferee (and, if the transferee is not an individual, such owners of a legal or beneficial interest in the transferee as we may request) must (i) enter into a written assignment, in a form satisfactory to us, assuming and agreeing to discharge and guarantee all of your obligations under this Agreement and (ii) must execute our then-current form of personal guarantee.
- I.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, a transferee of a Moes Southwest Grill franchise must sign the then-current form of the franchise agreement and all other then-current related agreements as required of new franchisees generally. However, the transferee is not required to pay the initial franchise fee stated in the new franchise agreement, and the term of the new franchise agreement will expire on the expiration date of the original agreement.
In addition to the franchise agreement, the transferee (and owners, if the transferee is not an individual) must enter into a written assignment, in a form satisfactory to Moes Southwest Grill, assuming and agreeing to discharge and guarantee all of the obligations under the original agreement. They must also execute the then-current form of personal guarantee. Furthermore, all parties involved, including the original franchisee, owners, guarantors, the transferee, and individual owners of the transferee, must deliver a written and duly signed general release in a form prepared by Moes Southwest Grill, releasing all claims against the released parties and indemnifying them against any statements, representations, or warranties made to the proposed transferee.
These requirements ensure that the transferee is bound by the current standards and obligations of the Moes Southwest Grill franchise system while also protecting the franchisor from potential liabilities related to the transfer. The transferee also needs to agree in writing to upgrade and remodel the franchised business to conform to the then-current standards for quality and appearance within a reasonable time frame specified by Moes Southwest Grill, unless the business already meets those standards, in which case they only need to address items from the last quality assurance inspection.