factual

If a court determines that Moes Southwest Grill's termination was invalid, what accounting will Moes Southwest Grill provide?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer from 2025 FDD Document

If an arbitrator or court of competent jurisdiction makes a final, unappealed determination that the termination was not valid, we will make a full and complete accounting for the period during which we operated the Franchised Business.

Source: Item 22 — Contracts (FDD page 92)

What This Means (2025 FDD)

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, if an arbitrator or court determines that Moe's Southwest Grill's termination of the franchise agreement was not valid, Moe's Southwest Grill will provide a full and complete accounting for the period during which they operated the franchised business.

This means that Moe's Southwest Grill would have to provide a detailed financial report outlining all income and expenses related to the operation of the franchise during the time that Moe's Southwest Grill was running it after the disputed termination. This accounting would allow the franchisee to understand the financial performance of the business during that period and to reconcile any discrepancies.

This clause protects the franchisee by ensuring transparency and accountability from Moe's Southwest Grill in the event of an invalid termination. It ensures the franchisee is made aware of the financial standing of the business during the period it was operated by Moe's Southwest Grill. It is important for prospective franchisees to understand the conditions under which Moe's Southwest Grill can terminate the agreement and the recourse available if the termination is disputed and found to be invalid.

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.