What is the highest estimated cost for construction and build-out for a freestanding Moes Southwest Grill location?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
any calendar year will not exceed, at our option, (a) 50% of the fee that is in effect at the start of the calendar year or (b) the increase in the actual costs and expenses that we or our affiliates incur to provide such goods or services to you.
ITEM 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Amount of Expenditure | Method of | When Payments | To Whom | ||
|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Are Due | Payment Will Be Made |
| Initial Franchise Fee 1 | $30,500 | $30,500 | Lump sum | At signing of Franchise Agreement | Us |
| Construction and | $245,000 | $540,700 | As incurred | As arranged | Contractors |
| Build Out Costs – | |||||
| Inline and Endcap 2 | |||||
| Construction and | $245,000 | $1,075,400 | As incurred | As arranged | Contractors |
| Build Out Costs – | |||||
| Freestanding 2 | |||||
| Permitting 3 | $2,300 | $17,500 | As incurred | Before opening | Government agencies |
| Equipment Package 4 | $168,000 | $256,400 | Lump |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–47)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the estimated high cost for construction and build-out for a freestanding location is $1,075,400. This figure encompasses expenses paid to a general contractor to build the restaurant according to Moes Southwest Grill's standards, including HVAC, electrical work, carpentry, flooring, and painting. These costs are significantly higher for freestanding buildings due to the inclusion of ground-up construction expenses such as the exterior shell, site work, parking lots, and lighting. The high estimate assumes the franchisee is responsible for constructing the building and performing the site work.
Construction and build-out costs can vary significantly based on factors such as the size and condition of the premises, the availability of existing leasehold improvements, the extent and quality of desired improvements, landlord contributions, and local material and labor costs. The FDD notes that in major metropolitan markets like Boston, Chicago, New York, Los Angeles, San Francisco, Seattle, and Washington, D.C., these costs could be even higher due to local market rates. The estimate provided is net of potential tenant improvement allowances, with the high estimate assuming that no such allowance is available.
Prospective franchisees should carefully consider these factors and conduct their own thorough investigation, including consulting with qualified advisors, to determine a more precise estimate for their specific location. Understanding the potential for cost variations and the factors that influence them is crucial for accurate financial planning and decision-making when investing in a Moes Southwest Grill franchise.