Does a Moes Southwest Grill franchisee have exclusive or protected rights in their site selection area?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ou fail to cancel any scheduled training without at least 14 days' prior notice, or if you are not prepared to successfully participate in any scheduled training, we may charge you a cancellation fee and the cost of conducting the originally scheduled training (including any training fees and any travel and living expenses incurred by our representatives) and require you to pay an additional fee for the rescheduled training.
ITEM 12
TERRITORY
Accepted Location
Your Restaurant may only be operated at the Accepted Location. If we have not yet accepted a site for the Restaurant when we execute the Franchise Agreement, you must select a location that we accept in accordance with our site selection criteria within a site selection area that we specify. We will determine the site selection area on a case-by-case basis. You will have no exclusive or protected rights in your site selection area.
Area of Protection
You may receive a territory with limited protected rights (an "Area of Protection") as described in this Item.
Source: Item 12 — Territory (FDD pages 68–72)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, franchisees do not automatically receive exclusive or protected rights within their site selection area. The FDD specifies that while Moes Southwest Grill will determine a site selection area, the franchisee will have no exclusive or protected rights to it. However, franchisees may receive a territory with limited protected rights, referred to as an "Area of Protection."
The size and scope of the Area of Protection, if granted, is determined on a case-by-case basis and will be included in the Franchise Agreement. Factors influencing the size of the Area of Protection include market demand, demographics, income levels, the presence of other businesses and competitors, traffic patterns, the location of other Moes Southwest Grill restaurants, and future development plans. Moes Southwest Grill retains significant rights, including the ability to establish franchises or company-owned businesses offering similar products outside the Area of Protection or in Captive Audience Locations, even if an Area of Protection is granted.
If Moes Southwest Grill does not grant an Area of Protection, the franchisee will not have a protected territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. Even with an Area of Protection, Moes Southwest Grill and its affiliates retain the right to sell approved products through alternative channels of distribution, such as supermarkets, e-commerce, and delivery kitchens, both inside and outside the Area of Protection. Furthermore, the Area of Protection can be reduced or eliminated if the franchisee defaults under the Franchise Agreement and fails to cure the default.
Prospective Moes Southwest Grill franchisees should carefully consider these territorial rights and potential competition when evaluating the franchise opportunity. It is important to discuss the possibility of obtaining an Area of Protection and to understand the factors that Moes Southwest Grill considers when determining its size and scope. Franchisees should also be aware of the potential for competition from other channels of distribution and the rights retained by Moes Southwest Grill and its affiliates.