Can Moes Southwest Grill modify the mandatory insurance coverages required of franchisees?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, Moe's Southwest Grill retains the right to modify the mandatory insurance coverages required of its franchisees. The document states that Moe's Southwest Grill may increase, decrease, add to, delete from, or modify the mandatory insurance coverages it requires. These changes will be made in accordance with reasonable and customary changes in the industry, as determined by Moe's Southwest Grill.

Currently, franchisees must obtain and maintain the coverage specified in Schedule A of the franchise agreement. This includes, but is not limited to, comprehensive general liability insurance with specified limits, dram shop liability insurance (if serving alcohol), workers' compensation insurance, automobile liability insurance, umbrella/excess liability policy, business property insurance, employment practices liability insurance, and cyber liability insurance. The specific coverage amounts and conditions are detailed in Section 13.2 of the franchise agreement.

This flexibility allows Moe's Southwest Grill to adapt to changing industry standards and potential risks, which could impact franchisees. For example, if cyber threats increase, Moe's Southwest Grill might increase the required cyber liability insurance coverage. While this ensures better protection for both the franchisor and franchisees, it could also mean increased insurance costs for the franchisee. Franchisees should stay informed of any changes to insurance requirements and factor potential increases into their financial planning.