Does Moes Southwest Grill have an obligation to approve a franchisee's request to relocate their franchised business?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We are under no obligation to approve a relocation of the Franchised Business. Approval under this Section 5.5 will be within our sole discretion, and such approval shall not be granted unless you are in compliance with all terms and conditions of this Agreement and you have the funds available to relocate the Franchised Business and construct a new Franchised Business according to our then-current design standards.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Moe's Southwest Grill is under no obligation to approve a franchisee's request to relocate their franchised business. The decision to approve a relocation is at Moe's Southwest Grill's sole discretion.
For a franchisee to even be considered for relocation, they must first submit a site acceptance request for their new proposed location before closing their current franchised business. The franchisee is responsible for all expenses associated with the relocation.
Even if a franchisee meets the initial requirements, Moe's Southwest Grill will only grant approval if the franchisee is in full compliance with all terms and conditions of the Franchise Agreement and has sufficient funds to cover the relocation and construction of the new franchise according to the current design standards. If Moe's Southwest Grill approves the relocation, they may charge a relocation fee equal to 10% of the then-current Initial Franchise Fee.