Does Moes Southwest Grill offer financing for trade fixtures?
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 Moe's Southwest Grill's 2025 Franchise Disclosure Document, Moe's Southwest Grill does not offer financing for trade fixtures. This means that prospective franchisees must secure their own funding for these essential restaurant components. Trade fixtures are items necessary to operate the business, such as counters, ovens, and seating.
While Moe's Southwest Grill does not directly provide financing, they may refer franchisees to third-party leasing or financing companies. It is important to note that these companies are not affiliated with Moe's Southwest Grill, and neither Moe's Southwest Grill nor its affiliates receive any financial benefits from these referrals. Moe's Southwest Grill also does not guarantee any franchisee's financial obligations to lenders.
Moe's Southwest Grill participates in the SBA's Franchise Directory and may modify the Franchise Agreement to comply with SBA requirements, potentially making it easier for franchisees to secure SBA loans. Moe's Southwest Grill may also engage an advisor to assist franchisees in securing financing, but the franchisee is not required to use this consultant and must sign a separate agreement with them. Ultimately, franchisees are responsible for securing the necessary financing to cover trade fixtures and other startup costs.
It is fairly common for franchisors to not offer direct financing, instead relying on third-party relationships or the franchisee's own resources. Franchisees should carefully consider their financing options and the terms of any loans or leases they obtain, as these will directly impact their profitability and financial stability.