If Moes Southwest Grill sells goods directly to franchisees, at what price will they be sold?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Products sold using the Marks. In particular, you may not operate a ghost kitchen or delivery business selling goods, products, or services under another brand.
- 7.6 Test Marketing. We may from time to time conduct test marketing to determine consumer trends and the salability of new food or non-food products and services. You will participate in any test marketing we require by providing us with timely reports and other relevant information as we may request. In connection with test marketing, you will purchase for the Franchised Business the reasonable quantity of test products we specify and will use your best efforts to promote and sell test products.
- 7.7 Disclaimer of Warranties. WE AND OUR AFFILIATES EXPRESSLY EXCLUDE AND DISCLAIM ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE WITH RESPECT TO ALL GOODS THAT WE OR OUR AFFILIATES OFFER, SELL, OR REQUIRE FOR YOUR FRANCHISED BUSINESS (COLLECTIVELY, "SOURCED PRODUCTS"). YOUR EXCLUSIVE REMEDY AND OUR AND OUR AFFILIATES' EXCLUSIVE LIABILITY FOR ALL CLAIMS RELATED TO ANY SOURCED PRODUCTS IS (I) LIMITED TO YOUR REMEDIES AGAINST THE GIVEN THIRD PARTY SUPPLIER OR MANUFACTURER (WHICH SHALL NOT INCLUDE OUR AFFILIATES) FOR ANY OF THE SOURCED PRODUCTS THEY PROVIDE; AND (II) FOR ANY OF THE SOURCED PRODUCTS THAT WE OR OUR AFFILIATES PROVIDE, LIMITED TO THE PURCHASE PRICE OF SUCH SOURCED PRODUCTS, PLUS SHIPPING COSTS, IF ANY, YOU PAID; OR, AT OUR OR OUR AFFILIATES' OPTION, THE REPLACEMENT OF SUCH SOURCED PRODUCTS. WE AND OUR AFFILIATES WILL NOT BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT, CONSEQUENTIAL, MULTIPLIED, EXEMPLARY, OR PUNITIVE DAMAGES FOR ANY MATTER STATED IN THIS SECTION 7 (GOODS AND SERVICES), REGARDLESS OF THE DIRECT OR INDIRECT CAUSE OF THE DAMAGES. This disclaimer of warranties does not affect any claims you may have against third party manufacturers or Suppliers of any Sourced Products.
8. COMPLIANCE WITH THE SYSTEM AND MANUALS
- 8.1 Manuals. We will lend you one hard copy of, or grant you electronic or other access to, the Manuals during the Term. We may provide the Manuals, and any Supplements to the Manuals (defined below), to you in hard copy or electronically via applications for mobile devices, DVD, intranet, other storage media, electronic mail, video, the Internet, or other electronic formats.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the price at which Moe's Southwest Grill or its affiliates sell goods to franchisees is the purchase price of such sourced products, plus shipping costs, if any. The franchise agreement also states that Moe's Southwest Grill and its affiliates expressly exclude and disclaim all implied warranties of merchantability and fitness for a particular purpose with respect to all goods that they offer, sell, or require for your franchised business.
This means that if a franchisee has issues with the goods purchased from Moe's Southwest Grill, the franchisee's exclusive remedy and Moe's Southwest Grill's exclusive liability for all claims related to any sourced products is limited to the purchase price of such sourced products, plus shipping costs, if any, you paid; or, at Moe's Southwest Grill's option, the replacement of such sourced products. However, this disclaimer of warranties does not affect any claims a franchisee may have against third-party manufacturers or Suppliers of any Sourced Products.
It is also important to note that Moe's Southwest Grill and/or its affiliates may derive revenue based on a franchisee's purchases and leases, including from charging the franchisee for goods they provide and from promotional allowances, volume discounts, and other payments made to them by manufacturers, Suppliers, or third parties. Moe's Southwest Grill can use all amounts received from manufacturers, Suppliers, or third parties, whether or not based on a franchisee's or other franchisees' actual or prospective dealings with them, without restriction for any purposes they deem appropriate.