How many notices of default can Moes Southwest Grill send to a franchisee before termination is possible?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
y of your Owners default under any other agreement between us and/or our affiliates, whether or not related to the Franchised Business, and fail to cure such default within any applicable cure periods (if any) under such agreement, provided that such default or failure to cure such default would permit us or our affiliate to terminate such agreement.
- K. You operate your Franchised Business in any manner that we determine in our reasonable discretion poses a threat or danger to public health or safety, including, without limitation, if a public official requires you to close your Franchised Business as a result of your violation of any Laws relating to public health or safety.
- L. You misuse or make any unauthorized use of the Marks.
- 17.3 Our Termination: Opportunity to Cure Within Cure Period. We have the right to terminate this Agreement for any of the defaults in this Section 17.3 after we send you a notice of default, if you fail to cure the default to our reasonable satisfaction within the time specified below (or the earliest date permitted by applicable law), without further notice or opportunity to cure if:
- A. 24 hours after we send you a notice of default, you fail to cure a default for failing to grant us immediate access to your Franchised Business or any other place where business related to the Franchised Business is conducted to perform any of the inspections, audits, or copying described in this Agreement; or if in the course of an inspection, audit, or copying you fail to make the materials we request available to us or provide us with full cooperation in the course of the inspections, audits, or copying.
- B. 24 hours after we send you a notice of default, you fail to cure a default related to any dilution or adulteration of Approved Products or any misrepresentation, substitution, or palming off of unapproved products from the Franchised Business.
- C. 24 hours after we send you a notice of default, you fail to cure a default related to complying fully with all Laws, unless there is a bona fide dispute as to the violation or legality of a Law and you promptly resort to a court or other appropriate forum having jurisdiction to contest the violation or illegality.
- D. 5 calendar days after we send you a notice of default, you fail to cure a default related to (i) selling, bartering, or exchanging, or attempting to sell, barter, or exchange, any Proprietary Goods or Approved Products at wholesale or retail, except as contemplated by this Agreement, (ii) failing to purchase all Goods from us, our affiliates, or our designated Approved Suppliers, or (iii) using any unapproved Goods in the Franchised Business.
- E.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the number of notices of default required before termination varies depending on the nature of the default. Moe's Southwest Grill has the right to terminate the Franchise Agreement after sending a single notice of default, provided the franchisee fails to cure the default within the specified time. The cure period can be as short as 24 hours for serious violations, such as denying access to the Franchised Business for inspections or adulterating approved products.
For other types of defaults, Moe's Southwest Grill provides longer cure periods. For instance, a franchisee has 5 calendar days to cure defaults related to selling unauthorized goods, 10 calendar days to cure defaults related to payments, failure to obtain required personal convenants, defaults under a mortgage or lease, failure to maintain required insurance, or failure to provide required systems and reports.
In summary, there is no fixed number of notices required across all situations. Moe's Southwest Grill can initiate termination after just one notice for certain critical violations if not cured within a very short timeframe. For a prospective franchisee, this underscores the importance of understanding and adhering to the specific requirements outlined in the Franchise Agreement to avoid potential termination.