Will Moes Southwest Grill guarantee a franchisee's lease for any lender?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Disclosure Document | |
|---|---|---|---|
| Item | |||
| e. Opening | 6.5 and 17.2.I. | 11 | |
| f. Fees | 3, 5.4.A., 5.4.E., 5.5.B., 6.2.B., 6.5.D., 8.3, 8.6, 10.1, 10.2, 10.3, 10.4, 11., 12.2, 12.4, 12.6.C., 12.8, 12.9, 12.11, 16.3, 16.4, 16.5, 16.6, 16.8, 17.5.D., 17.5.F., 18.1, 18.2, 18.3, and 19.3 | 5 and 6 | |
| g. Compliance with | 8 and 12 | 8, 11, 15, and 16 | |
| Standards and | |||
| policies/the Manuals | |||
| h. Trademarks and | 9 and 15 | 13 and 14 | |
| proprietary information | |||
| i. Restrictions on | 7 and 8 | 8 and 16 | |
| products/services | |||
| offered | |||
| j. Warranty and customer | 8.6 | Not Applicable | |
| service requirements | |||
| k. Territorial development | Not Applicable | 12 | |
| and sales quotas | |||
| l. Ongoing product/service | 7, 12.8, 12.9, and 12.11 | 6 and 8 | |
| purchases | |||
| m. Maintenance, | 2.2.B.(i), 6, 12.5, 12.6, and 16.3.F. | 11 | |
| appearance and | |||
| remodeling requirements | |||
| n. Insurance | 13.2 and 13.3 | 6, 7, 8, and 11 | |
| o. Advertising | 10 | 6 and 11 | |
| p. Indemnification | 13.1 | 6 | |
| q. Owner’s participation/ | 12.7 and Schedule A – 20.A. | 15 | |
| management/ staffing | |||
| r. Records and reports | 14 | 6 | |
| s. Inspections and audits | 6.2, 6.5, 7.3, 7.4, 12.2, 12.3, 14, and 17.3.A. | 6 | |
| t. Transfer | 16 | 6 and 17 | |
| u. Renewal | 2.2 | 6 and 17 | |
| v. Post-termination | 18 | 17 | |
| obligations | |||
| w. Non-competition | 15 and Schedule B | 17 | |
| covenants | |||
| x. Dispute resolution | 19 and 22.5 | 6 and 17 | |
| y. Personal Guaranty | 1.4 and Schedule C | Not Applicable |
ITEM 10
FINANCING
We do not offer financing for trade fixtures, opening inventory, or any other purpose.
We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. Currently, we will not guarantee your note, lease, or obligation, for any lender, or any other person or entity. We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you, and, if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
Source: Item 10 — Financing (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Moe's Southwest Grill does not offer to guarantee a franchisee's lease for any lender. However, Moe's Southwest Grill may refer franchisees to leasing or financing companies that are not affiliated with them.
Furthermore, Moe's Southwest Grill and its affiliates do not receive any fees or other financial benefits from any lender for a franchisee's financing. Moe's Southwest Grill may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and they may pay the advisor for this assistance to franchisees. However, Moe's Southwest Grill will not be responsible for the consultant's provision of services to the franchisee, and, if the franchisee chooses to use the consultant, they must sign the consultant's form of agreement. Franchisees will not be required to participate in any financing program that Moe's Southwest Grill implements.
Moe's Southwest Grill participates in the SBA's Franchise Directory and may modify the Franchise Agreement, if necessary, to comply with SBA requirements for franchisees to participate in certain SBA loan programs. Moe's Southwest Grill may also sell, assign, or discount to a third party any note, financing-related contract or other instrument a franchisee gives to them. This means that while Moe's Southwest Grill won't directly guarantee a lease, they may provide resources or participate in programs that indirectly support a franchisee's financing efforts.