What is the maximum amount that the Survey and Design Fee for Moes Southwest Grill can change in a year?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. | | Refresh/ | Our then-current fee. | As incurred | You must refresh your Restaurant every five | | Remodel Site | Currently, $1,200 to | | years and must remodel your Restaurant |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| Survey and Design Fee | $6,000 depending on the scope of the required changes. | every ten years to meet our then-current Standards. We may require you to pay us, our affiliates, or our designee this fee to inspect your Restaurant and produce a site survey and/or design plan that will comply with these obligations. We may change this fee in any year by no more than the Allowed Adjustment. | |
| Transfer Fee | 50% of the then- current Initial Franchise Fee if it is a Control Transfer; if it is a transfer to a related party or that is not a Control Transfer, 10% of the then- current Initial Franchise Fee. | At transfer closing | Payable to us if you transfer any interest in your Franchise Agreement or Restaurant. A "Control Transfer" occurs if there is a transfer of (i) any interest in the Franchise Agreement, (ii) the Restaurant or substantially all of its assets, (iii) more than 20% of the ownership interests in you, or (iv) any interests that result in a change in control of your entity. See Item 17.k for the definition of "transfer." |
| Renewal Fee | 20% of the then- current Initial Franchise Fee. | Before we sign renewal Franchise Agreement | Payable to us if you enter into a renewal term. |
| Computer Systems Fee | A reasonable fee, which will vary based on the services provided. | As needed | Paid to contractors, or us or our affiliates, as applicable. We may charge a reasonable systems fee for modifications and enhancements and other maintenance and support services related to the Computer System (as defined in Item 11), which will not exceed 110% of our actual costs and expenses. The amount for upgrades and maintenance varies based on the extent of the upgrade or services provided. |
| POS System License and Lease Fees | Our then-current fee. Currently, $140 to $324 per month if you purchase the POS System under the CapEx Program and $588 to $802 per month if you lease the POS System under the HaaS Program. | As incurred | We will pay, on your behalf, our designated POS System vendor the monthly license and lease fees that are required for you to use the POS System. The fee under the CapEx Program includes the software license fee. The fee under the HaaS Program includes the software license fee and the hardware lease fee. The fees are equal to our actual costs and expenses plus a 0.5% administrative fee to offset the costs we incur administering the program. These fees may change from time to time based on the fees charged by the third-party vendor. |
| POS System Support Fee | Our then-current fee. Currently, between $125 and $250 per month. | As Incurred | You must remit this fee to us or our affiliate (or a third-party vendor approved by us) for software and hardware support for your POS System. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the Survey and Design Fee is $6,000, and the franchisor may change this fee each year by no more than the Allowed Adjustment. The Survey and Design Fee is charged every ten years to meet the franchisor's then-current standards. Franchisees may be required to pay this fee to the franchisor, its affiliates, or its designee to inspect their Restaurant and produce a site survey and/or design plan that will comply with these obligations.
The "Allowed Adjustment" in any calendar year will not exceed, at the franchisor's option, (a) 50% of the fee that is in effect at the start of the calendar year or (b) the increase in the actual costs and expenses that the franchisor or its affiliates incur to provide such goods or services.
For a prospective Moes Southwest Grill franchisee, this means that the Survey and Design Fee, which is initially $6,000, could increase by a maximum of 50% in a given year, or by the increase in the franchisor's actual costs and expenses. The Survey and Design Fee is only assessed every 10 years, so this change would not occur annually.