factual

Will Moes Southwest Grill guarantee a franchisee's note for any lender?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

The following contracts and related documents are attached to this Disclosure Document:

EXHIBIT B MOE'S SOUTHWEST GRILL FRANCHISE AGREEMENT AND RELATED AGREEMENTS:

Schedule A - Franchise Specific Terms Schedule B - Personal Covenants

Schedule C - Guaranty of Payment and Performance Schedule D - State Law Addendum (If Required)

Schedule E - Multi-Unit Addendum

Source: Item 10 — Financing (FDD pages 52–53)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, it is not clear whether Moe's Southwest Grill will guarantee a franchisee's note for any lender. While Exhibit B lists several agreements related to the franchise agreement, including a Guaranty of Payment and Performance (Schedule C), the document does not explicitly state that Moe's Southwest Grill will act as a guarantor for a franchisee's loan. The presence of a standard guaranty agreement suggests that individual owners or related entities may be required to guarantee the franchisee's obligations. However, this is distinct from the franchisor providing a guarantee.

Prospective franchisees should carefully review Schedule C - Guaranty of Payment and Performance to understand who is required to act as a guarantor. This schedule likely outlines the conditions under which a personal or corporate guarantee is required from the franchisee or its owners. It is essential to understand the extent of the financial obligations and potential liabilities associated with providing a guarantee.

To clarify whether Moe's Southwest Grill offers any form of loan guarantee or assistance, prospective franchisees should directly ask the franchisor about their policies on financial support and guarantees. Understanding the franchisor's position on loan guarantees is crucial for assessing the overall financial risk and viability of the franchise investment.

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.