Can a Moes Southwest Grill franchisee divert business from the Franchised Business during the term of the agreement?

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, during the term of the franchise agreement, a franchisee is explicitly prohibited from diverting or attempting to divert any business or potential business away from their Moe's Southwest Grill franchised location. This restriction is part of a broader set of restrictive covenants designed to protect the brand and the franchise system.

This means that a franchisee must focus their efforts on growing their Moe's Southwest Grill business and cannot operate another business or engage in activities that would take customers away from their franchised restaurant. This restriction ensures that the franchisee is fully committed to the success of their Moe's Southwest Grill location and that they are not using their association with the brand to benefit other ventures at the expense of the franchise.

These types of restrictions are common in franchising to maintain brand consistency and protect the customer base of each franchise location. Franchisees should carefully consider these restrictions and ensure they are comfortable with them before investing in a Moe's Southwest Grill franchise. It is important to note that these restrictions also extend beyond the term of the agreement for a specified period and geographic area, as detailed in the FDD.