What is the highest estimated total initial investment for a freestanding Moes Southwest Grill location?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount of Expenditure | Method of | When Payments | To Whom | |||
|---|---|---|---|---|---|---|
| Type of Expenditure | Low | High | Payment | Are Due | Payment Will Be Made | |
| Exterior Signage 8 | $13,900 | $22,300 | Lump sum | Before opening | Vendors | |
| Computer System 9 | $13,000 | $50,100 | As incurred | Before opening | Vendors | |
| Smallwares 10 | $9,800 | $20,000 | As incurred | Before opening | Vendors | |
| TV/Music 11 | $2,400 | $5,000 | As incurred | Before opening | Vendors | |
| Architect/Engineer 12 | $9,800 | $20,000 | As incurred | Before opening | Architect | |
| Rent 13 | $4,500 | $20,000 | Monthly | As arranged | Lessors | |
| Grand Opening | $25,000 | $35,000 | As incurred | Before opening | Vendors or Us | |
| Marketing 14 | ||||||
| Legal and Accounting Fees 15 | $3,500 | $50,000 | As incurred | Before opening | Lawyers and accountants | |
| Insurance 16 | $1,425 | $7,550 | As incurred | Before opening | Insurance companies | |
| Misc. Opening | $2,500 | $5,000 | As incurred | Before opening | Vendors, us | |
| Costs/Office | ||||||
| Supplies 17 | ||||||
| Security Deposits 18 | $1,500 | $8,000 | As incurred | As incurred | Utility companies, lessors | |
| Management Training | $0 | $7,500 | As incurred | Before opening | Us | |
| Program Fee 19 | ||||||
| Travel and Living Expenses during Training 19 | $8,100 | $11,700 | As incurred | Before opening | Airlines, hotels and restaurants | |
| On-Site Training Fee 20 | $0 | $18,300 | As incurred | Before opening | Us | |
| Opening Inventory 21 | $15,000 | $35,000 | As incurred | Before opening | Vendors | |
| Additional Funds - 3 | $25,000 | $53,000 | As incurred | As incurred | Us, employees, vendors, etc. | |
| Months 22 | ||||||
| Total Initial Investment – Endcap and Inline 23 | $624,725 | $1,315,550 | ||||
| Total Initial Investment – Freestanding 23 | $624,725 | $1,850,250 |
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 highest estimated total initial investment for a freestanding restaurant is $1,850,250. This figure is part of a broader range that starts at $624,725 for both endcap/inline and freestanding locations, indicating that the low-end costs are similar regardless of the location type. The higher investment for a freestanding location likely reflects the increased costs associated with ground-up construction, including expenses for the exterior shell, site work, parking lots, and lighting.
Prospective franchisees should note that this is just an estimate, and actual costs can vary significantly. Factors such as location, market conditions, and the franchisee's ability to negotiate favorable terms with landlords and vendors can all impact the final investment. The FDD advises potential franchisees to conduct their own thorough investigation and seek advice from qualified advisors before making any decisions about investing in a Moes Southwest Grill franchise.
The document specifies that the high estimate for a freestanding building assumes the franchisee will be responsible for both constructing the building and performing the site work. In contrast, the low estimate assumes the developer will handle the site work up to five feet outside the building's walls. This difference in responsibility accounts for a significant portion of the cost variation between the low and high estimates. Franchisees should carefully consider these factors and assess their own capabilities and resources when evaluating the potential investment.
Given the substantial investment required, prospective Moes Southwest Grill franchisees should conduct thorough due diligence. This includes researching local construction costs, understanding potential tenant improvement allowances, and evaluating the specific requirements for their chosen location. Consulting with experienced contractors, real estate brokers, and financial advisors can provide valuable insights and help franchisees make informed decisions about their investment.