When must a Moes Southwest Grill franchisee deliver proof of insurance compliance to the franchisor?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a franchisee must provide proof of insurance compliance to the franchisor in the following instances: before starting construction of the franchised business, annually upon the expiration, renewal, or replacement of each insurance policy, and within 10 days after the franchisor demands it.

This requirement ensures that Moe's Southwest Grill franchisees maintain adequate insurance coverage to protect both their business and the franchisor from potential liabilities. The insurance policies must be issued by an authorized carrier with a rating of "A-" (Excellent) / VIII ($100M to $250M policy holder surplus) or better by A.M. Best and Company, Inc., or its successor. The policies must also name Moe's Southwest Grill and its affiliates as additional insured parties and include a waiver of subrogation in favor of the franchisor.

The franchisor also stipulates that the insurer must provide 30 days' written notice before any cancellation or modification of the policy, except in the case of non-payment of premiums, where only 10 days' notice is required. Furthermore, unless otherwise noted, the insurance policies must be written on occurrence-based policy forms and may not be subject to unreasonable deductibles or retentions without the franchisor's prior written approval.

If a franchisee fails to maintain the required insurance, Moe's Southwest Grill has the right, but not the obligation, to procure insurance on behalf of the franchisee, in addition to any other remedies available to them. This underscores the importance of franchisees adhering to the insurance requirements outlined in the franchise agreement to avoid potential business disruptions and financial repercussions.