Does Moes Southwest Grill offer financing for opening inventory?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Disclosure Document | |
|---|---|---|---|
| Item | |||
| e. Opening | 6.5 and 17.2.I. | 11 | |
| f. Fees | 3, 5.4.A., 5.4.E., 5.5.B., 6.2.B., 6.5.D., 8.3, 8.6, 10.1, 10.2, 10.3, 10.4, 11., 12.2, 12.4, 12.6.C., 12.8, 12.9, 12.11, 16.3, 16.4, 16.5, 16.6, 16.8, 17.5.D., 17.5.F., 18.1, 18.2, 18.3, and 19.3 | 5 and 6 | |
| g. Compliance with | 8 and 12 | 8, 11, 15, and 16 | |
| Standards and | |||
| policies/the Manuals | |||
| h. Trademarks and | 9 and 15 | 13 and 14 | |
| proprietary information | |||
| i. Restrictions on | 7 and 8 | 8 and 16 | |
| products/services | |||
| offered | |||
| j. Warranty and customer | 8.6 | Not Applicable | |
| service requirements | |||
| k. Territorial development | Not Applicable | 12 | |
| and sales quotas | |||
| l. Ongoing product/service | 7, 12.8, 12.9, and 12.11 | 6 and 8 | |
| purchases | |||
| m. Maintenance, | 2.2.B.(i), 6, 12.5, 12.6, and 16.3.F. | 11 | |
| appearance and | |||
| remodeling requirements | |||
| n. Insurance | 13.2 and 13.3 | 6, 7, 8, and 11 | |
| o. Advertising | 10 | 6 and 11 | |
| p. Indemnification | 13.1 | 6 | |
| q. Owner’s participation/ | 12.7 and Schedule A – 20.A. | 15 | |
| management/ staffing | |||
| r. Records and reports | 14 | 6 | |
| s. Inspections and audits | 6.2, 6.5, 7.3, 7.4, 12.2, 12.3, 14, and 17.3.A. | 6 | |
| t. Transfer | 16 | 6 and 17 | |
| u. Renewal | 2.2 | 6 and 17 | |
| v. Post-termination | 18 | 17 | |
| obligations | |||
| w. Non-competition | 15 and Schedule B | 17 | |
| covenants | |||
| x. Dispute resolution | 19 and 22.5 | 6 and 17 | |
| y. Personal Guaranty | 1.4 and Schedule C | Not Applicable |
ITEM 10
FINANCING
We do not offer financing for trade fixtures, opening inventory, or any other purpose.
We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. Currently, we will not guarantee your note, lease, or obligation, for any lender, or any other person or entity. We may engage an advisor to provide consulting services to franchisees to assist them with securing financing, and we may pay the advisor for this assistance to franchisees. We will not be responsible for the consultant's provision of services to you, and, if you choose to use the consultant, you must sign the consultant's form of agreement. You will not be required to participate in any financing program that we implement.
Source: Item 10 — Financing (FDD pages 52–53)
What This Means (2025 FDD)
According to the 2025 FDD, Moes Southwest Grill does not offer financing for opening inventory. This means that prospective franchisees must secure funding for these expenses through their own means, such as personal savings, loans from banks or credit unions, or other external financing options. This is a fairly common practice in the franchise industry, as many franchisors do not directly finance these costs.
While Moes Southwest Grill does not offer direct financing, they may refer franchisees to leasing or financing companies that are not affiliated with them. The FDD states that neither Moes Southwest Grill nor its affiliates receive any fees or financial benefits from lenders for franchisee financing. Furthermore, Moes Southwest Grill will not guarantee any franchisee's note, lease, or obligation to any lender.
Moes Southwest Grill participates in the SBA's Franchise Directory and may modify the Franchise Agreement to comply with SBA requirements for franchisees participating in certain SBA loan programs. They may also engage an advisor to provide consulting services to franchisees to assist them with securing financing, and they may pay the advisor for this assistance. However, franchisees are not required to participate in any financing program implemented by Moes Southwest Grill, and if a franchisee chooses to use the consultant, they must sign the consultant's form of agreement. Franchisees should carefully consider these options and seek professional advice to determine the best financing strategy for their individual circumstances.