What are the non-competition covenants after the Moes Southwest Grill franchise is terminated or expires?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| r. | Section 15.4.B. | For 12 months after expiration or termination, no |
|---|---|---|
| Non-competition | ||
| covenants after the | of Franchise | involvement in a competitive business at the Accepted |
| franchise is terminated or | Agreement | Location, within 3 miles of your Accepted Location, or |
| expires | within 3 miles of any Restaurant; and no diverting or attempting to divert any business from any Restaurant. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, franchisees are subject to certain non-competition covenants after the franchise is terminated or expires. Specifically, for a period of 12 months after the expiration or termination of the franchise agreement, the franchisee cannot be involved in a competitive business at the Accepted Location.
This restriction also extends to a 3-mile radius around the former franchisee's Accepted Location, as well as within 3 miles of any other Moes Southwest Grill restaurant. Furthermore, the franchisee is prohibited from diverting or attempting to divert any business from any Moes Southwest Grill restaurant during this 12-month period.
These non-competition terms are designed to protect Moes Southwest Grill's market share and brand recognition by preventing former franchisees from using their knowledge and experience gained while operating a Moes Southwest Grill to directly compete with the franchise system shortly after their departure. Franchisees should carefully consider these restrictions, as they could limit their business opportunities after the franchise agreement ends.