How often can Moes Southwest Grill charge non-compliance fees for ongoing violations?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
etermine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothing in this Section 12.4 limits any of our rights under Section 17 (Default and Termination), including the right to terminate this Agreement.
- D. Non-compliance Fees. If you fail to comply with any o
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, non-compliance fees, ranging from $25 to $500 per single violation, can be charged repeatedly, even as frequently as daily, if the non-compliance is ongoing. These fees are in addition to any other remedies Moe's Southwest Grill may pursue. The fees will be specified in the manuals or in writing and may be modified from time to time upon written notice.
This means that if a franchisee fails to comply with the standards outlined in the franchise agreement, Moe's Southwest Grill has the right to charge non-compliance fees. The frequency of these charges depends on how long the violation continues. For example, if a franchisee repeatedly fails to maintain cleanliness standards, they could face a daily fee until the issue is resolved.
It's important to note that these fees can vary based on the severity and number of defaults, as well as whether the defaults have been repeated. However, the fees may only be increased each calendar year by no more than the Allowed Adjustment. This policy incentivizes franchisees to promptly address any issues and maintain compliance with Moe's Southwest Grill's standards to avoid accumulating significant non-compliance fees.