For a Moes Southwest Grill franchise, what constitutes acceptance of delivery by the customer?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The acceptance by Customer of shipment upon arrival of the Products at Customer's Address will constitute delivery to Customer.
- 6. INSPECTION. Customer must inspect the Products immediately on its delivery to Customer's location, and within 2 business days after delivery, give notice to Company if Customer believes that the Products is not in accordance with these terms. If Customer fails to give such notice, the Products will be deemed to be in all respects in accordance with these terms, and Customer will be bound to accept and pay for the Products in accordance with these terms. Customer may reject the Products only if any variance from these terms is material. All claims are deemed waived unless made in writing and received by Company within 15 days after Customer discovers the alleged defect.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, customer acceptance of a product delivery occurs when the shipment arrives at the customer's address.
Specifically, the FDD states that "The acceptance by Customer of shipment upon arrival of the Products at Customer's Address will constitute delivery to Customer." This means that once the products reach the Moe's Southwest Grill location, the franchisee's acceptance of the shipment signifies that delivery is complete.
The franchisee is obligated to inspect the products immediately upon delivery and notify the company within two business days if the products do not conform to the agreed-upon terms. Failure to provide timely notice means the products are deemed accepted, and the franchisee is responsible for payment. The franchisee can only reject products if the variance from the terms is material, and all claims must be made in writing and received by the company within 15 days of discovering the alleged defect.
This clause is important for franchisees as it sets clear expectations and timelines for inspecting deliveries and reporting any issues. Failing to adhere to these guidelines could result in the franchisee being obligated to pay for non-conforming goods. Franchisees should ensure they have a system in place to promptly inspect all deliveries to protect their interests.