For a Moes Southwest Grill franchise, what is the requirement regarding leasehold improvements and their sourcing?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
6. LEASEHOLD IMPROVEMENTS
6.1 General Contractor and Improvements.
- A. General Contractor. You must engage, at your expense, a licensed and insured general contractor ("General Contractor") that we have designated or pre-approved to complete the build-out of your Franchised Business, unless we, in our sole discretion, agree in writing to accept a General Contractor that you propose. Our designation, pre-approval, or acceptance of a General Contractor will not in any way be our endorsement of such General Contractor or render us liable for such General Contractor's performance.
- B. Leasehold Improvements. We may require any items used in the Franchised Business to meet our minimum Standards and/or to be sourced from suppliers or consolidators
that we have designated or approved. You must purchase certain items of machinery and equipment and other items used in the Franchised Business from our designated or approved consolidators or as we otherwise direct. The designated consolidators will coordinate the ordering and delivery of your machinery and equipment. You may request a waiver of the requirement that you use our designated consolidators if you can demonstrate that you can successfully manage the process of ordering and obtaining your machinery and equipment.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, franchisees are required to use a licensed and insured general contractor that has been designated or pre-approved by Moe's Southwest Grill for the build-out of their franchised business. The franchisor may agree in writing to accept a general contractor proposed by the franchisee, but this is at their sole discretion. The approval of a general contractor does not constitute an endorsement or liability on the part of Moe's Southwest Grill for the contractor's performance.
Moe's Southwest Grill may require that all items used in the franchised business meet their minimum standards and/or be sourced from designated or approved suppliers or consolidators. Franchisees must purchase certain machinery, equipment, and other items from these designated or approved sources, who will also coordinate the ordering and delivery of these items.
However, a franchisee can request a waiver from using the designated consolidators if they can demonstrate their ability to successfully manage the ordering and procurement process independently. This requirement ensures that the Moe's Southwest Grill restaurants maintain a consistent standard in terms of quality and appearance, but it also allows some flexibility for franchisees who can prove they can meet these standards through alternative means.