What happens to a Moes Southwest Grill franchisee's access to the System if they are in default of any obligation?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Period), if we do not exercise our right to terminate the Agreement, we may, at our sole election and upon delivery of written notice to you, take any or all of the following actions:
- A. Suspend your access and use of the System or our websites (including your access or use of website pages), our applications, or our online ordering platforms;
- B. Suspend your or the Franchised Business's participation in any programs or benefits we offer, including any programs or benefits that are funded by Advertising Contributions;
- C. Suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement;
- D. Suspend or terminate any temporary or permanent fee reductions to which we might have agreed (whether as a policy, in an amendment to this Agreement, or otherwise);
- E. Suspend our performance of, or compliance with, any of our obligations to you under this Agreement or other agreements; and/or
- F. Undertake or perform on your behalf any obligation or duty that you are required to, but fail to, perform under this Agreement. You will reimburse us upon demand for all costs and expenses that we or our affiliates reasonably incur in performing any such obligation or duty.
- 17.6 Exercise of Other Remedies. Our exercise of our rights under Section 17.4 (Suspension of Rights After Your Default) and 17.5 (Other Remedies After Your Default) will not (i) be a defense for you to our enforcement of any other provision of this Agreement or waive or release you from any of your other obligations under this Agreement, (ii) be a defense at law or equity based on impossibility of your performance or any claim against us or our Approved Suppliers. (iii) constitute an actual or constructive termination of this Agreement, or (iv) be our sole or exclusive remedy for your default. You must continue to pay all fees and otherwise comply with all of your obligations under this Agreement following our exercise of any of these rights. If we exercise any of our rights under Section 17.5, we may thereafter terminate this Agreement without providing you any additional corrective or cure period, unless the default giving rise to our right to terminate this Agreement has been cured to our reasonable satisfaction.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, if a franchisee is in default of any obligation under the Franchise Agreement, Moe's Southwest Grill has the right to suspend the franchisee's access to and use of the System. This includes access to Moe's Southwest Grill's websites, applications, and online ordering platforms. This action can be taken at Moe's Southwest Grill's sole election and upon written notice to the franchisee.
In addition to suspending access to the System, Moe's Southwest Grill may also suspend the franchisee's participation in any programs or benefits offered by the company, including those funded by advertising contributions. Moe's Southwest Grill can also suspend any other services provided to the franchisee under the Franchise Agreement or any other agreement. Furthermore, Moe's Southwest Grill has the option to suspend or terminate any temporary or permanent fee reductions that may have been agreed upon. Moe's Southwest Grill can also suspend its own performance of, or compliance with, any obligations to the franchisee under the Franchise Agreement or other agreements.
Moe's Southwest Grill can also undertake or perform on the franchisee's behalf any obligation or duty that the franchisee is required to perform but fails to do so. The franchisee will be responsible for reimbursing Moe's Southwest Grill for all costs and expenses incurred in performing such obligations or duties. It is important to note that the exercise of these rights by Moe's Southwest Grill does not waive any other provisions of the Franchise Agreement, release the franchisee from other obligations, or serve as a defense against enforcement of the agreement. The franchisee must continue to pay all fees and comply with all obligations even if Moe's Southwest Grill exercises these rights. Moe's Southwest Grill can also terminate the agreement without providing any additional cure period if the default is not resolved to their satisfaction.