From whom must a Moe's Southwest Grill franchisee purchase Proprietary Goods?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the "Proprietary Goods") from us, our affiliates, or our designated Approved Suppliers. The Proprietary Goods include printed paper, paper products, and plastic products bearing our Proprietary Marks (including, for example, dishes, containers, cartons, bags, napkins, and packaging supplies). We may require you to purchase certain trademarked product lines consisting of t-shirts, apparel, mugs and other merchandise and products bearing the Proprietary Marks ("Trademarked Product Lines") from us, our affiliates, or our designated Approved Suppliers. In addition, if we conduct test marketing to determine consumer trends and the salability of new food or non-food products and services, you may be required to purchase a reasonable quantity of test products we specify from designated Approved Suppliers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 47–51)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are required to purchase Proprietary Goods from specific sources. These Proprietary Goods, which include items like proprietary ingredients, uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging, must be purchased from Moe's Southwest Grill, its affiliates, or its designated Approved Suppliers. This requirement ensures brand consistency and quality control across all franchise locations.
The FDD specifies that Proprietary Goods also encompass printed paper, paper products, and plastic products that bear Moe's Southwest Grill's Proprietary Marks, such as dishes, containers, cartons, bags, napkins, and packaging supplies. Additionally, franchisees may be required to purchase Trademarked Product Lines, including t-shirts, apparel, mugs, and other merchandise bearing the Proprietary Marks, from the same designated sources. This allows Moe's Southwest Grill to maintain control over its branding and product quality.
Furthermore, Moe's Southwest Grill retains the right to require franchisees to purchase test products from designated Approved Suppliers during test marketing initiatives aimed at determining consumer trends and the salability of new food or non-food products and services. This ensures that all franchisees participate in testing new products to gauge market interest and potential success. These restrictions on sourcing are typical in franchising, allowing the franchisor to maintain quality and brand standards, although it limits the franchisee's autonomy in purchasing decisions.