For a Moes Southwest Grill franchise, who is responsible for the General Contractor's performance?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We will designate or pre-approve one or more licensed and insured general contractors (a "General Contractor") that you must engage, at your own expense, to complete your buildout, 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. (Franchise Agreement, Section 6.1.A.)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the franchisee is responsible for the General Contractor's performance. Although Moe's Southwest Grill may designate or pre-approve a list of general contractors that the franchisee must use for the buildout, the franchisee is still responsible for the contractor's performance. The franchisee is responsible for covering the expense of the general contractor.
This means that even though Moe's Southwest Grill might provide a list of approved contractors, it is ultimately the franchisee's responsibility to ensure the buildout is completed to their satisfaction and in accordance with the franchise agreement. If the General Contractor fails to perform adequately, the franchisee will bear the consequences, not Moe's Southwest Grill.
This is a fairly standard practice in the franchise industry, as the franchisee is the one managing the construction and will be responsible for the location. While Moe's Southwest Grill may offer assistance by designating or pre-approving contractors, this does not transfer the responsibility for the contractor's work away from the franchisee. Therefore, it is crucial for a prospective franchisee to carefully vet any contractor, even if they are on the approved list, and to actively manage the buildout process to protect their investment.