How often is the Late Reporting Fee charged by Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
r any other agreement between you and us or our affiliates. If you fail to report the Net Sales of the Franchised Business to us for any reporting period as required in this Agreement, we have the right to make bank transfers or drafts for Royalty Fees and Advertising Contributions based on our reasonable estimate of the amounts for the Franchised Business and/or the data of the point-of-sale system and other equipment provided for in Section 12.8.
- 3.5 Interest. You must pay us interest on amounts not paid on time at the rate of 1.5% per month or
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a Late Reporting Fee is imposed if a franchisee fails to submit timely, complete, and accurate reports, financial statements, tax returns, and initial investment statements as required by the franchise agreement. This fee is charged for each week that the required documents are late.
The Late Reporting Fee is currently set at $50 per week for each instance of late submission. This means that if a franchisee is one week late in submitting a required report, the fee will be $50; if two weeks late, the fee will be $100, and so on.
Moe's Southwest Grill retains the right to increase the Late Reporting Fee in any calendar year, but the increase is limited to the "Allowed Adjustment," which is not defined in this excerpt. It is important for prospective franchisees to understand these reporting requirements and ensure timely compliance to avoid incurring these weekly late fees, which can accumulate quickly.