Can I be involved in a competitive business anywhere during the term of my Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | Section 15.4 of Franchise Agreement | No involvement in a competitive business (generally, similar types of businesses that offer products the same or similar to the Approved Products) anywhere. You may not divert or attempt to divert any business or potential business, misuse vendor relationships, or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks and the System. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, during the term of the franchise agreement, franchisees are restricted from involvement in any competitive business. This restriction broadly covers businesses offering products similar to Moes Southwest Grill's approved products, and it applies regardless of location.
This means that as a Moes Southwest Grill franchisee, you cannot own, operate, or have any financial interest in a competing restaurant or food service business during the entire time you operate your Moes Southwest Grill franchise. This non-compete clause is designed to protect Moes Southwest Grill's market share, brand reputation, and proprietary systems.
Additionally, franchisees are prohibited from diverting or attempting to divert any business or potential business away from Moes Southwest Grill. They also cannot misuse vendor relationships or take any actions that could harm the goodwill associated with Moes Southwest Grill's trademarks and overall system. These restrictions aim to ensure that franchisees remain fully committed to the success of their Moes Southwest Grill location and do not engage in activities that could benefit a competing business at the expense of the franchise.