How frequently can Moes Southwest Grill charge non-compliance fees for ongoing violations?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
etermine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothing in this Section 12.4 limits any of our rights under Section 17 (Default and Termination), including the right to terminate this Agreement.
- D. Non-compliance Fees. If you fail to comply with any o
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, non-compliance fees, ranging from $25 to $500 per single violation, can be charged repeatedly, even as frequently as daily, if the non-compliance is ongoing. These fees are in addition to any other remedies Moe's Southwest Grill may be entitled to. Franchisees will receive written notice before any non-compliance fees are charged.
The fees are specified in the manuals or in writing and may be modified from time to time upon written notice. The amount of the non-compliance fees may vary based on the severity and number of defaults, as well as whether the defaults have been repeated. However, the fees may only be increased by a certain amount each calendar year, referred to as the Allowed Adjustment.
This policy means that a Moe's Southwest Grill franchisee could face significant and recurring financial penalties for failing to adhere to the standards and provisions outlined in the franchise agreement. It is important for prospective franchisees to carefully review the franchise agreement and manuals to understand the specific standards and potential non-compliance fees. Franchisees should also ensure they have systems in place to maintain compliance and address any issues promptly to avoid repeated fees.