Does Moes Southwest Grill have an option to purchase my business?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Franchise Agreement | Summary |
|---|---|---|
| f. You pay us a Transfer Fee. g. You and your guarantors and owners must sign h. general release and remain liable for pre-transfer obligations | ||
| n. Our right of first refusal to acquire your business | Section 16.8 of Franchise Agreement | We can match any offer for your Restaurant or substantially all interest in your entity. |
| o. Our option to purchase your business | Section 18.4 of Franchise Agreement | We may purchase your Goods related to the Restaurant at the fair market value (exclusive of good will) and may purchase your Accepted Location if you own it or your interest in any lease. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 77–82)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, Moes Southwest Grill does have an option to purchase a franchisee's business. Specifically, Moes Southwest Grill may purchase the franchisee's goods related to the restaurant at fair market value, excluding goodwill. Additionally, Moes Southwest Grill may purchase the Accepted Location if the franchisee owns it, or the franchisee's interest in any lease.
This clause in the Franchise Agreement gives Moes Southwest Grill the ability to take over a location if they choose. For a franchisee, this could provide an exit strategy if they wish to sell, although the price may not include the value of the brand's goodwill.
It is important for a prospective franchisee to understand the conditions under which Moes Southwest Grill might exercise this option and how the fair market value will be determined. Understanding these details can help a franchisee plan for the future and potential sale of their Moes Southwest Grill business.