Is the initial franchise fee for a Moes Southwest Grill franchise refundable?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ptember 2026, including precautions and response measures for credentialstuffing attacks.
Other than these actions, no litigation is required to be disclosed in this Item.
ITEM 4
BANKRUPTCY
No bankruptcy is required to be disclosed in this Item.
ITEM 5
INITIAL FEES
Initial Franchise Fee. When you sign your Franchise Agreement you must pay us an initial franchise fee (the "Initial Franchise Fee") of $30,500. We will not refund any part of the Initial Franchise Fee paid under the Franchise Agreement.
We reserve the right to reduce the Initial Franchise Fee under certain circumstances, including: (i) as an economic incentive for a franchisee to open a certain location, with the determination made on a case-by-case review of all relevant economic factors; (ii) as an inducement for existing operators to open additional Restaurants; (iii) as an inducement for someone to reopen a closed Restaurant; (iv) as an inducement for someone to take over an operating Restaurant; (v) as an inducement for a professional multi-unit operator to open several Restaurants; or (vi) to allow a franchisee to have additional money to spend on restaurant improvements and marketing during the first 12 months of operation. The amount of any reduction will be made on an individual basis and may depend on the condition of the premises, the need for upgrades and remodeling, any special circumstances that we may consider appropriate, and/or other considerations. In addition, we may allow a new franchisee to apply part of their Initial Franchise Fee to the cost of needed improvements or equipment. We may modify or cease offering any discount or incentive programs at any time.
We participate in the International Franchise Association's VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.
If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Restaurants, we may, in our sole discretion, offer a reduced Initial Franchise Fee for each Restaurant that you develop. You must pay us all of the Initial Franchise Fees for all of the Restaurants that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Restaurants by the
deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.
Source: Item 5 — Initial Fees (FDD pages 28–30)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The standard initial franchise fee is $30,500, and the FDD explicitly states that no part of this fee will be refunded under the Franchise Agreement. This is a fairly standard practice in the franchise industry, as the initial fee compensates the franchisor for the costs associated with granting the franchise, including training, site selection assistance, and brand onboarding.
However, the FDD also mentions specific situations where the initial franchise fee may be reduced, such as economic incentives for opening in certain locations, inducements for existing operators to open additional restaurants, or incentives for veterans through the VetFran program, which offers a reduced fee of $20,000. Additionally, for franchisees signing multiple agreements with a Multi-Unit Addendum, a reduced initial fee may be offered for each restaurant developed. Despite these potential reductions, the document reiterates that if the franchisee fails to meet the development deadlines outlined in the Multi-Unit Addendum, the prepaid initial franchise fees are not refundable.
Furthermore, the FDD states that all initial fees are generally non-refundable, reinforcing the policy that franchisees should not expect a refund of any initial fees paid to Moes Southwest Grill. This non-refundable policy underscores the importance of careful due diligence and planning before investing in a Moes Southwest Grill franchise. Prospective franchisees should thoroughly review the Franchise Agreement and Multi-Unit Addendum to understand the terms and conditions, including the circumstances under which fees are paid and the implications of failing to meet development obligations.