For Moes Southwest Grill, what is included in the Program Fee regarding service for the Freestyle Dispensers?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer Initials 4. PROGRAM FEE: Customer will pay Company its then current chain account monthly program fee per Freestyle Dispenser ("Program Fee") plus applicable sales tax. The base Program Fee for any particular type of Freestyle Dispenser will not increase during the term of the Agreement above the then current amount for that particular type of Freestyle Dispenser. The base Program Fee includes the rent for the Freestyle equipment and mechanical reactive service (including parts and, if a Freestyle Dispenser cannot be repaired in the reasonable judgment of Company, the replacement of the Freestyle Dispenser), standard wireless connectivity and standard consumption data. Company agrees that it will offer a base Program Fee throughout the Term and that the base Program Fee will provide the basic functionality to operate a Freestyle Dispenser.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the Program Fee for Freestyle Dispensers includes several key services. Specifically, the Program Fee covers the rent for the Freestyle equipment itself, ensuring franchisees have access to the necessary dispensing technology. Additionally, it includes mechanical reactive service, which encompasses both the cost of parts and the labor required for repairs. If a Freestyle Dispenser cannot be reasonably repaired, the Program Fee also covers the replacement of the unit.
Furthermore, the Program Fee provides standard wireless connectivity, allowing the Freestyle Dispensers to connect and send reports to the company's computer systems. This connectivity ensures that franchisees can access standard consumption data, which can be valuable for inventory management and sales analysis. However, if wireless communications are not available through the company's provider, the franchisee is responsible for providing comparable connectivity and bears all associated risks.
It is important to note that while the Program Fee covers mechanical reactive and reasonable preventative service, special service calls are charged separately at the company's then-current service rate. Additionally, if a franchisee elects to use soft ice, they will be responsible for addressing any related issues, such as bridging and clumping, and may incur increased costs of goods due to potential recipe changes implemented by the company to address faster product dilution caused by soft ice.