Does Moes Southwest Grill guarantee a minimum Area of Protection for a Restaurant?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
are facilities, (viii) universities, schools, and education facilities, (ix) convention centers, (x) military bases, and (xi) office buildings, business complexes, condominiums, dormitories, other high-density locations, and other similar non-restaurant locations. "Delivery Kitchens" include kitchens devoted to the preparation of products or Approved Products (often referred to as ghost, dark, or cloud kitchens), which may use the Marks and may deliver to customers located anywhere.
We may negotiate with you your Area of Protection. The size and scope of the Area of Protection will be in the Franchise Agreement and will be determined on a case-by-case basis. The factors that we consider in determining the size of an Area of Protection include current and projected market demand, demographics and population based on our research and experience, median household income, presence of other businesses, location of competitors, traffic patterns, access and visibility, location of other Restaurants, our future development plans and other market conditions. However, there is no minimum Area of Protection for a Restaurant, if we grant you one.
If we do not grant you an Area of Protection, you will not receive a protected territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — Territory (FDD pages 68–72)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the franchisor does not guarantee a minimum Area of Protection for a Restaurant. While an Area of Protection may be negotiated and included in the Franchise Agreement, its size and scope are determined on a case-by-case basis. Factors influencing this determination include market demand, demographics, income levels, the presence of other businesses and competitors, traffic patterns, and the franchisor's future development plans.
If Moes Southwest Grill does not grant an Area of Protection, the franchisee will not receive a protected territory and may face competition from other franchisees, company-owned outlets, or other channels of distribution. Even if an Area of Protection is granted, it is subject to reduction or elimination if the franchisee defaults under the Franchise Agreement and fails to cure the default. The Area of Protection, if granted, generally cannot be altered before the expiration or termination of the Franchise Agreement, provided the franchisee remains in compliance with the agreement.
Moes Southwest Grill retains significant rights, even with an Area of Protection. They may establish or license franchises and company-owned businesses outside the Area of Protection or in Captive Audience Locations, such as airports, stadiums, and universities, both inside and outside the Area of Protection. They can also sell Approved Products through alternative channels of distribution like supermarkets, e-commerce, and Delivery Kitchens, regardless of any Area of Protection. These reserved rights allow Moes Southwest Grill to adapt to market changes and pursue various distribution strategies, but they also mean that a franchisee's Area of Protection has limitations and is not an exclusive territory.