What is the maximum amount that Moes Southwest Grill can charge for the Technology Fee, relative to their costs?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The Technology Fee may be based on a percentage of Net Sales, fixed fees, and/or usage fees, provided that the fee collected will not exceed 110% of our or our affiliates' actual costs and expenses related to such products or services.
We may modify the Technology Fee and payment frequency from time to time.
We may replace or supplement other technology-related fees that we collect (such as the Ordering Support Fee) with the Technology Fee.
We will use the Technology Fee to defray our and our affiliates' costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that we, in our sole discretion, deem appropriate.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the Technology Fee that Moe's Southwest Grill may require franchisees to pay will not exceed 110% of Moe's Southwest Grill's or their affiliates' actual costs and expenses related to the technology products or services provided.
This means that if Moe's Southwest Grill incurs $1,000 in costs for developing, implementing, or supporting technology-related products and services, the maximum Technology Fee they can charge franchisees to cover these costs is $1,100. The Technology Fee is intended to defray the costs of developing, implementing, upgrading, operating, maintaining, supporting, or providing any technology-related products, services, programs, systems, or platforms that Moe's Southwest Grill deems appropriate.
This fee may be based on a percentage of Net Sales, fixed fees, and/or usage fees. Moe's Southwest Grill also retains the right to modify the Technology Fee and payment frequency over time and may replace or supplement other technology-related fees, such as the Ordering Support Fee, with the Technology Fee. This allows Moe's Southwest Grill flexibility in how they structure and collect the fee, but it also provides some assurance to franchisees that the fee will be reasonably related to the costs incurred by Moe's Southwest Grill for technology-related services.