From whom must a Moes Southwest Grill franchisee purchase ingredients for the Freestyle Dispensers?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ed by this Lease will be in writing and mailed by certified mail or hand delivered, addressed to the respective addresses of the parties. All claims, actions or suits arising out of the Lease will be litigated in courts in either the State of Georgia or in the state of Customer's principal place of business. Each party hereby consents to the jurisdiction of any local, state or federal court located within the State of Georgia and/or the state of Customer's principal place of business, and designates the Secretary of State of the State as its agent for service of process. THIS LEASE WILL BE GOVERNED BY THE LAWS OF THE STATE OF GEORGIA. Time is of the essence to each and all of the provisions of this Lease.
EXHIBIT 5 COCA-COLA FREESTYLE
1. FREESTYLE: Freestyle Dispensers combine ingredients (microdosed beverage components, beverage mixes and flavors stored in cartridges and nutritive and nonnutritive sweeteners stored in bag-in-boxes and/or cartridges) to create a wide variety of branded fountain beverages.
2. PRICING AND ORDERING OF INGREDIENTS:
- a. Customer will purchase the ingredients for the Freestyle Dispensers from Company or its authorized distributors, at Company's then-current chain account prices, which are subject to change from time to time.
- b. Company agrees that the over-all pricing for the ingredients available for purchase in the 48 contiguous United States and the District of Columbia in a given calendar year except for HFCS Sweetener will not increase in the next calendar year by more than the pricing at the end of the given year increased by the greater of: (i) 4%; or (ii) a percentage determined for that calendar year by the following calculation based upon changes to the Consumer Price Index for Food Away From Home as published by the Department of Labor ("CPI"). See Note in Exhibit 5-2.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees must purchase ingredients for the Freestyle Dispensers from either the Company (referring to Moe's Franchisor SPV LLC) or its authorized distributors. The prices for these ingredients will be the then-current chain account prices, which are subject to change.
Notably, Moe's Southwest Grill states that the overall pricing for ingredients available for purchase in the 48 contiguous United States and the District of Columbia, excluding HFCS Sweetener, will not increase by more than a specified amount in the next calendar year. This increase is capped at the greater of 4% or a percentage determined by changes to the Consumer Price Index for Food Away From Home, as published by the Department of Labor. The franchisee can find the published CPI at http://www.bls.gov/cpi/tables.htm.
The FDD also mentions that franchisees can order ingredients through Company approved forms of payment at http://cokesmart.com, via an automated ordering system, or through distributors. Shipping charges may apply, and orders fulfilled directly by the Company are subject to the terms attached as Exhibit 5-1. Orders fulfilled by distributors are also subject to additional terms offered by each distributor. The means and terms of ordering ingredients are subject to change from time to time.