What information and documentation must a Moes Southwest Grill franchisee provide when requesting a transfer?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
or Entities, that did not have that power before that acquisition.
- 16.2 No Transfer Without Our Consent. This Agreement and the license are personal to you, and we have granted the license in reliance on your (and, if you are an Entity, your Owners') business skill, financial capacity, and personal character. Accordingly, neither you nor any of the Owners or any successors to any part of your interest in this Agreement or the license may make any Transfer or permit any Transfer to occur without obtaining our prior written consent. Any purported Transfer, without our prior written consent, will be null and void and will constitute a default under this Agreement, for which we may terminate this Agreement without opportunity to cure.
- A. Requesting Consent. If you or any of your Owners desire to make a Transfer, you must promptly provide us with written notice. You agree to provide any information and documentation relating to the proposed Transfer that we reasonably require. We have the right to communicate with both you, your counsel, and the proposed transferee on any aspect of a proposed Transfer. No Control Transfer may be completed until at least 60 days after we receive all requested information to evaluate the proposed Control Transfer. No other Transfer may be completed until at least 30 days after we receive all requested information to evaluate such proposed Transfer.
- B. Granting Consent. We have sole and absolute discretion to withhold our consent, except as otherwise provided in Sections 16.4 through 16.7. Without limiting the foregoing, we will not consent to a Transfer, and we are under no obligation to do so, if (i) your Franchised Business is not open and operating; or (ii) the Transfer would cause a transferee or its owners to breach another agreement (whether or not with us). Our consent to a Transfer does not constitute a waiver of any claims that we have against the transferor, nor is it a waiver of our right to demand exact compliance with the terms of this Agreement.
- 16.3 Control Transfer. For a proposed Control Transfer, in addition to any other conditions that we may specify and without limiting in any way our sole and absolute discretion to grant or withhold consent for a proposed Control Transfer, at a minimum, the following conditions must be satisfied (unless waived by us):
- A.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, if a franchisee wishes to transfer their franchise, they must provide written notice to Moe's Franchisor SPV LLC. The franchisee must also provide any information and documentation relating to the proposed transfer that Moe's reasonably requires. Moe's Southwest Grill has the right to communicate with the franchisee, their counsel, and the proposed transferee regarding any aspect of the proposed transfer.
For transfers that do not result in a change of control, the franchisee must provide Moe's Southwest Grill with a copy of all proposed contracts and other information concerning the transfer and transferee that Moe's may request. The franchisee and/or their transferee must also satisfy certain conditions, including paying all sums owed to Moe's, not being in default, ensuring the transferee meets qualifications, signing an assignment and guaranty, signing a general release, and remaining liable for pre-transfer obligations.
For transfers that do result in a change of control, the franchisee must notify Moe's Southwest Grill in writing at least 90 days prior to the proposed transfer and provide all requested information at least 60 days prior to the proposed control transfer. The franchisee must ensure that all sums owed to Moe's and its affiliates are paid and that they are not in default under any agreement with Moe's, its affiliates, or any approved suppliers. The transferee and its personnel must also satisfactorily complete Moe's Management Training Program and meet Moe's requirements for approval as new franchisees.
These requirements ensure that Moe's Southwest Grill maintains control over who operates its franchises and that any new franchisees meet its standards. Franchisees should carefully review these requirements and gather all necessary documentation before initiating a transfer to avoid delays or denial of the transfer request.