When is the Master Insurance Policy Fee due for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| Distributors (as defined in Item 8) | year by no more than the Allowed Adjustment. | ||
| Master Insurance Policy Fee | Currently not charged; we do not have an estimate at this time. | As incurred | We reserve the right to obtain a master insurance policy on behalf of the System for certain types of coverage and require you to pay all or a portion of your proportionate share of coverage under the master policy to us or our Approved Supplier. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the Master Insurance Policy Fee is currently not charged. However, if Moe's Southwest Grill decides to implement this fee in the future, it will be due as incurred. Currently, there is no estimate available for the amount of this fee.
Moe's Southwest Grill retains the right to obtain a master insurance policy on behalf of the entire franchise system for specific types of coverage. If such a policy is implemented, franchisees may be required to pay their proportionate share of the coverage costs, either to Moe's Southwest Grill or to an Approved Supplier.
This means that while franchisees are not currently paying this fee, they should be prepared for the possibility of it being implemented in the future. It is important to note that the fee would be for a proportionate share of coverage under a master policy, suggesting that the cost would be distributed across all franchisees. Prospective franchisees should inquire about the potential types of coverage and estimated costs associated with this master insurance policy to better understand potential future expenses.