factual

What happens if there is a material change in the terms of the offer to purchase a Moes Southwest Grill franchise before the closing of the sale to a third party?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

Any material change in the terms of the offer before closing of the sale to the third party will constitute a new offer, subject to the same rights of first refusal by us as in the case of an initial offer.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, any material change to the terms of an offer to purchase a franchise before the sale is finalized is considered a new offer. This triggers the same right of first refusal for Moe's Southwest Grill as with an initial offer.

In practical terms, if a franchisee receives an offer from a third party to buy their Moe's Southwest Grill location and the terms of that offer change significantly before the deal closes, the franchisor has the right to review the new terms and decide if they want to purchase the franchise themselves under those revised terms. This is to ensure that Moe's Southwest Grill maintains control over who joins their franchise system and under what conditions a franchise can be transferred.

This right of first refusal allows Moe's Southwest Grill to maintain brand consistency and protect its interests. It also means that a franchisee looking to sell their business needs to be aware that any changes to the deal could delay or complicate the sale, as the franchisor has the right to step in and purchase the franchise instead. Franchisees should maintain open communication with Moe's Southwest Grill during any sale negotiations to avoid potential issues.

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.