Can a Moes Southwest Grill franchisee acquire the Accepted Location before the franchisor has accepted it?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
nt agreement with GoTo Foods for the provision of certain support and services to Moe's franchisees. GoTo Foods may delegate certain of these responsibilities to MFL, the previous franchisor of Moe's franchises, or other affiliates. However, we remain responsible for all of the support and services required under the Franchise Agreement.
Our Pre-Opening Obligations
Before you open your Restaurant, we will fulfill the following obligations:
1. Site Selection Review. We will review the location you select for your Restaurant and accept it if it meets our minimum site criteria, at which point it will become the Accepted Location. You may not acquire the Accepted Location until we have accepted it. If you and we have not agreed on an Accepted Location at the time we sign the Franchise Agreement, you must select a location that complies with our site selection criteria within a geographic area that we specify. For any proposed site, we may require you to obtain a site selection analysis from an Approved Supplier, which may include an analysis of such factors as traffic patterns, demographics, and competitors within the market, and provide us with a copy of this analysis. We estimate the cost for this site selection analysis
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, a franchisee cannot acquire the Accepted Location for their restaurant until Moe's Southwest Grill has formally accepted it. The FDD states, "You may not acquire the Accepted Location until we have accepted it." This means that the franchisee must first have a location reviewed and approved by Moe's Southwest Grill before taking any steps to secure the site, such as signing a lease or purchase agreement.
This requirement protects both the franchisee and Moe's Southwest Grill. By ensuring that the location meets the franchisor's minimum site criteria, Moe's Southwest Grill aims to increase the likelihood of the restaurant's success. For the franchisee, this prevents them from investing time and resources into a location that may not be suitable for a Moe's Southwest Grill restaurant. The FDD also states that if the franchisee and franchisor have not agreed on an Accepted Location when signing the Franchise Agreement, the franchisee must select a location that complies with the franchisor's site selection criteria within a specified geographic area.
The site selection process may also involve the franchisee obtaining a site selection analysis from an Approved Supplier, with estimated costs ranging from $2,500 to $5,000. Moe's Southwest Grill considers factors such as population density, traffic flow, visibility, parking, household income, and local competition when determining whether to accept a site. There is no specified time limit for Moe's Southwest Grill to approve or disapprove a site, so prospective franchisees should factor this uncertainty into their planning.
Overall, this policy ensures that all Moe's Southwest Grill locations meet the brand's standards and have a reasonable chance of success, although the franchisor disclaims any responsibility for the suitability of the Accepted Location. Franchisees should work closely with Moe's Southwest Grill during the site selection process and be prepared to conduct thorough due diligence to find an appropriate location.