Can Moes Southwest Grill match any offer for my restaurant or substantially all interest in my entity?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| n. Our right of first refusal to acquire your business | Section 16.8 of Franchise Agreement | We can match any offer for your Restaurant or substantially all interest in your entity. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, Moe's Southwest Grill has the right of first refusal to acquire a franchisee's restaurant business. Specifically, Moe's Southwest Grill can match any offer that a franchisee receives for their restaurant or for substantially all interest in the franchisee's entity. This is detailed in Section 16.8 of the Franchise Agreement.
This right of first refusal means that if a franchisee decides to sell their Moe's Southwest Grill restaurant, they must first offer the business to Moe's Southwest Grill on the same terms as any offer received from a third party. Moe's Southwest Grill then has the option to purchase the restaurant themselves by matching the terms of the offer.
For a prospective franchisee, this clause could impact their exit strategy. While they are free to find a buyer for their restaurant, Moe's Southwest Grill ultimately has the final say on who acquires the business. This could potentially delay or complicate the sale process if Moe's Southwest Grill decides to exercise its right of first refusal. Franchisees should carefully consider this provision and its potential implications before entering into a franchise agreement with Moe's Southwest Grill.