How does Moes Southwest Grill generally recognize its other revenue streams?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the company recognizes revenue from franchise fees, Company SBR revenues, franchise and other rental revenues, and advertising funds as the related performance obligations are satisfied. Moe's Southwest Grill generally recognizes revenue associated with franchise and development fees of open SBRs over time. However, the FDD states that the company's other revenue streams are generally recognized at a point in time.

For a prospective franchisee, this means that while initial franchise fees and development fees are recognized by Moe's Southwest Grill over the term of the franchise agreement, other revenue streams like royalties, vendor rebates, or digital transaction fees are recognized when the service is fully provided or the sale is completed. This distinction is important for understanding how Moe's Southwest Grill accounts for different types of income and how it may affect the financial reporting and obligations of the franchisee.

It's important to note that the specific details of revenue recognition can be complex and may depend on the terms of the franchise agreement and accounting standards. A prospective Moe's Southwest Grill franchisee should consult with a financial advisor or accountant to fully understand the implications of these revenue recognition policies for their individual situation.