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What happens if Moes Southwest Grill uses a different nutritive sweetener than HFCS?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

If the Department of Labor discontinues publishing the PPI or materially changes the PPI, or if Company uses a different nutritive sweetener than HFCS, then Company will establish a different pricing methodology for its nutritive sweetener to be determined in its sole discretion.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the pricing for High Fructose Corn Syrup (HFCS) sweetener is determined by comparing the monthly average of the Producer Price Index (PPI) for Corn Sweetener, as published by the Department of Labor, between two consecutive October through September periods. The company calculates the percentage difference between these averages. If the PPI increases, Moe's Southwest Grill will not increase its HFCS sweetener pricing by more than that percentage in the given calendar year. Conversely, if the PPI decreases, the HFCS sweetener pricing will decrease by that percentage.

However, the FDD states that if Moe's Southwest Grill opts to use a different nutritive sweetener other than HFCS, the company will establish a different pricing methodology for the alternative sweetener. This new pricing methodology will be determined at the sole discretion of Moe's Southwest Grill.

For a prospective franchisee, this means that the cost of sweeteners could be subject to change if Moe's Southwest Grill decides to switch from HFCS to another sweetener. The franchisee would have no control over this decision or the resulting pricing methodology, which could impact their cost of goods and overall profitability. It would be prudent for a potential franchisee to inquire about the likelihood of such a change and the factors that would influence Moe's Southwest Grill's decision-making process regarding sweetener selection and pricing.

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.