What is the maximum amount the Moes Southwest Grill training fee can be increased in a calendar year?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
re you to reimburse us for their travel and living expenses (including airfare, car expenses, lodging, meals, etc.) during such On-Site Training.
- 11.3 Additional Programs. We may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or additional or refresher training sessions on any matters related to the System ("Additional Programs"). We will determine the duration, curriculum, and location of such Additional Programs, which may take the form of web-based training modules, webinars, seminars, in-person training, or on-site training. Your Required Trainees, Primary Contact, Owners, and other personnel we designate must attend any Additional Programs that we require. We may charge you a reasonable fee for your trainees to attend any Additional Program, which currently ranges from $0 to $2,500 per attendee and may be increased in any calendar year by no more than the Allowed Adjustment.
11.4 Other Training Terms.
- A. Modifications. We reserve the right to modify our Management Training Program, Additional Programs, or any other training programs at any time, including the timing, frequency, content, format, and location of training.
- B. Training Platform. We may require you to purchase or license from us, our affiliates, or Approved Suppliers any training platform and equipment necessary to use or access the training materials. We may require you to pay us or our affiliates a license fee for such training platform or learning management system, which may be increased in any calendar year by no more than the Allowed Adjustment.
- C. Expenses and Compensation. You will pay all expenses you and your personnel incur for any training programs, including your/their travel, food, lodging, compensation, and benefit expenses. We will not pay any compensation for any services you and your personnel perform in any training program. You must purchase uniforms for any of your trainees that attend our Management Training Program.
- D. Cancellation Fee.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the training fees associated with various programs can be increased each calendar year, but the FDD does not specify a maximum dollar amount or percentage. Instead, the document states that the fees may be increased by no more than the "Allowed Adjustment".
This "Allowed Adjustment" applies to several types of training fees, including those for Additional Programs, fees for training platforms or learning management systems, fees for On-Site Training, and fees for the Management Training Program for additional or subsequent trainees. The initial fees vary, such as $250 per trainee per day for the Management Training Program, $500 per representative per day for additional consulting services, and a range from $0 to $2,500 per attendee for Additional Programs. On-Site Training is $500 per trainer per day.
For a prospective Moe's Southwest Grill franchisee, it is important to understand what the "Allowed Adjustment" is, as it will directly impact the potential costs of training and support services. Since the FDD does not define this term, it is crucial to ask the franchisor for clarification on how the "Allowed Adjustment" is calculated and what factors influence its value. This information will help in accurately forecasting the ongoing expenses related to training and support.