Can the franchisor waive any of the conditions for a Control Transfer of a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
For a proposed Control Transfer, in addition to any other conditions that we may specify and without limiting in any way our sole and absolute discretion to grant or withhold consent for a proposed Control Transfer, at a minimum, the following conditions must be satisfied (unless waived by us):
- A.
You notify us in writing at least 90 days prior to any proposed Control Transfer and provide all requested information at least 60 days prior to any proposed Control Transfer.
- B.
All sums you owe us and our affiliates are paid.
- C.
You are not (i) at the time of the Transfer request or the Transfer closing, in default in any material respect under this Agreement or any other agreement with us, or any of our affiliates, or any of our Approved Suppliers and (ii) you have not been during the Term, in default in any material respect under this Agreement or any other agreement with us, any of our affiliates, or any of our Approved Suppliers without curing such default within the applicable cure period.
- D.
The transferee and its proposed directors, officers, shareholders, partners, and members, as applicable, and its Manager and any other personnel we designate, who will be responsible for operating and managing the Business, satisfactorily complete before the date of Transfer our Management Training Program.
- E.
The transferee and its directors, officers, shareholders, partners, members, and managers, as applicable, meet our requirements for approval as new franchisees, including our requirements for proficiency in the English language.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, Moes Southwest Grill can waive conditions for a Control Transfer. For a Control Transfer, certain conditions must be met, but Moes Southwest Grill has the discretion to waive these requirements.
These conditions include the franchisee providing written notice at least 90 days before the proposed transfer and all requested information at least 60 days prior. Additionally, all outstanding payments to Moes Southwest Grill and its affiliates must be settled. The franchisee must not be in default of any agreements with Moes Southwest Grill, its affiliates, or approved suppliers. The transferee must also complete the Management Training Program and meet the requirements for new franchisee approval, including English language proficiency.
Moes Southwest Grill maintains sole discretion to grant or withhold consent for a Control Transfer, and the ability to waive conditions provides flexibility in the transfer process. However, Moes Southwest Grill can also specify additional conditions for the transfer. This waiver provision offers potential benefits to franchisees by allowing for more adaptable transfer arrangements, but it ultimately depends on Moes Southwest Grill's assessment of the specific situation.