factual

What is a Moes Southwest Grill franchisee required to do regarding the terms of the Site Agreement?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

on. We will provide you with our acceptance or non-acceptance of the Proposed Location within 15 days after you deliver the last item of materials we request, and our determination will be final. If we accept the Proposed Location as the Accepted Location, you must sign standard documentation we prepare, which includes a general release, to document the Accepted Location. Our acceptance of any Proposed Location is our agreement that the Proposed Location satisfies our minimum site

selection criteria only and will not be construed as a representation or warranty that the Franchised Business located at the Proposed Location will be successful.

5.4 Site Acquisition.

  • A. Acceptance and Execution of Site Agreement. You must deliver a copy of the signed lease, sublease, or other rental agreement for the location (the "Lease") or purchase agreement for the location (the "Purchase Agreement" and, collectively with the Lease, the "Site Agreement") to us with all material terms specified therein, and any other additional documents you were required to sign with the Site Agreement, either: (i) after we sign this Agreement if we have identified the Accepted Location before we sign this Agreement, or (ii) immediately following the date we accept the location after we sign this Agreement. We may charge you a Lease Documentation Late Fee if you fail to timely provide the Site Agreement within 15 days after its execution. The "Lease Documentation Late Fee" shall be $500 per month (or partial month) from the due date for providing the Site Agreement until the date it is delivered. Before you sign the Site Agreement, you must ensure that it meets the requirements of this Section 5.4. We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with this Section 5.4.
  • B. Site Agreement Restrictions. If you execute a Site Agreement, (i) you may not create any obligations on our behalf, grant any rights adverse to our rights, or agree to any other term that is inconsistent with any term of this Agreement; (ii) you must duly and timely perform all terms under the Site Agreement; and (iii) except as otherwise provided in this Agreement, you may not assign, encumber, or transfer the Site Agreement, or sublet all or any part of the Accepted Location, without our prior written approval, which approval will not be unreasonably withheld. You must ensure that all Site Agreements comply with any terms set forth in the Manuals.
  • C. Preferred Lease Terms. You must use commercially reasonable efforts to ensure that all Leases include, unless we agree otherwise in writing:
  • (i) a provision which requires the landlord concurrently to provide us with a copy of any written notice of breach or default under the Lease sent to you, and which grants to us the right (but not the obligation) to cure any defaults under the Lease within a reasonable time (not to exceed 15 days for monetary defaults and 30 days for non-monetary defaults);
  • (ii) a provision that provides that upon the expiration or termination of this Agreement or upon your default under the Lease or under this Agreement, we will, without your or the landlord's further consent, have (a) a continuing right of entry into the Franchised Business, (b) the right to operate a Business at the Accepted Location, (c) the right, but not the obligation, to assume your interests under the existing terms, conditions and covenants of the Lease, and (d) should we assume your position under the Lease, the right to assign the Lease or sublet the premises to a third party which will operate a Business at the location;
  • (iii) a provision that provides that upon expiration or termination of the Lease, we will, without your or the landlord's further consent, have a continuing right of entry into the Franchised Business to remove Proprietary Products and any materials bearing the Marks;
  • (iv) a provision that provides that the Lease may not be modified or amended without our written consent which will not unreasonably be withheld, conditioned or delayed by us;

  • (v) a provision that allows you to offer or distribute product samples outside or over the counter of the Franchised Business, as applicable;
  • (vi) a provision that provides that if we assume your obligations and replace you as the lessee under the Lease or sign a new lease, and we later reassign the Lease or new lease to another franchisee, we will not be liable for any obligations to landlord under the Lease or new lease after the reassignment;
  • (vii) a provision, or a separate collateral assignment of lease, that provides that your landlord reserves to us the right, at our election, to take an assignment of the leasehold interest and to occupy the Accepted Location for the Franchised Business upon termination or expiration of this Agreement or default under the Lease; and
  • (viii) a provision that provides that your Franchised Business will have at least one designated parking space for curb-side pickup.
  • D. Site Agreement Modifications. You must submit a copy of any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") (along with a true and complete copy of the then-existing Site Agreement) to us for our review and approval prior to executing such documents, not less than 10 days prior to the proposed effective date of such modification, amendment, or renewal. Our review of the proposed Site Agreement Change will be limited to ensuring that it is compliant with the terms of this Agreement. Our acceptance of the Site Agreement Change shall not be

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a franchisee must deliver a copy of the signed lease, sublease, or rental agreement (the "Lease") or purchase agreement (the "Purchase Agreement," and together with the Lease, the "Site Agreement") to Moe's Southwest Grill with all material terms specified. This must be done either after Moe's Southwest Grill signs the Franchise Agreement if the location is already identified, or immediately after Moe's Southwest Grill accepts the location if the agreement is signed beforehand. Failure to provide the Site Agreement within 15 days of execution may result in a Lease Documentation Late Fee of $500 per month.

Before signing the Site Agreement, the franchisee must ensure it meets the requirements outlined in Section 5.4 of the Franchise Agreement. Moe's Southwest Grill retains the right, but not the obligation, to review the Site Agreement to ensure compliance. If a franchisee executes a Site Agreement, they cannot create obligations on behalf of Moe's Southwest Grill, grant rights adverse to Moe's Southwest Grill's rights, or agree to terms inconsistent with the Franchise Agreement. The franchisee must also duly and timely perform all terms under the Site Agreement and cannot assign, encumber, or transfer the Site Agreement or sublet the location without prior written approval from Moe's Southwest Grill, which will not be unreasonably withheld.

Furthermore, all Site Agreements must comply with the terms set forth in Moe's Southwest Grill's manuals. Franchisees are expected to use commercially reasonable efforts to include certain preferred lease terms in all Leases, unless otherwise agreed to in writing by Moe's Southwest Grill. These terms include provisions for Moe's Southwest Grill to receive copies of default notices, the right to cure defaults, the right to operate at the location upon expiration or termination of the Franchise Agreement or Lease, and the right to remove proprietary products and materials bearing Moe's Southwest Grill's marks.

Finally, any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") must be submitted to Moe's Southwest Grill for review and approval at least 10 days before the proposed effective date. Moe's Southwest Grill's approval will not be unreasonably withheld and may be conditioned on the inclusion of specific terms. If a Lease is renewed or extended for 12 months or more, Moe's Southwest Grill may require the franchisee to pay a lease renewal fee, which can be increased annually by no more than the Allowed Adjustment. The franchisee must provide Moe's Southwest Grill with a copy of any signed Site Agreement Change within 15 days of execution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.