Is an owner of a Moes Southwest Grill franchise required to participate in the actual operation of the Restaurant?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to devote your best efforts to the proper and effective operation of the Restaurant. You (if you are an individual) and your Owners (if you are an Entity) are not required to participate in the actual operation of the Restaurant but may, with our consent, serve as the Primary Contact and/or a Manager. However, we do not recommend an investment in a Restaurant for investors interested in an absentee management business.
You must appoint a Primary Contact who will be responsible for, and have decision-making authority regarding, the Restaurant and its operation. You may not appoint, remove, or replace the Primary Contact without our prior written approval. Your Primary Contact must (i) hold a direct or indirect, legal, or beneficial interest of 5% or more in your Entity or (ii) hold a direct or indirect, legal, or beneficial interest in your Entity and have a written agreement with you that provides for a means that such Primary Contact will increase such interest to 5% or more in your Entity. Your Primary Contact must successfully complete Primary Contact Training to our satisfaction. We may, in our sole discretion, permit your Primary Contact to serve as a Manager for the Restaurant, provided that it is their full-time job, they otherwise qualify for the position, and they successfully complete the Management Training Program.
You must have two Managers who are dedicated to the Restaurant, one of whom may also be the Primary Contact. Your Managers must have day-to-day management responsibility for your Restaurant, exercise on-premises supervision, and personally participate in the direct operation of the Restaurant. Your Managers may be (but are not required to be) an Owner. Your Managers must complete the Management Training Program to our satisfaction. You must inform us in writing of the identity of your Managers and any successor Managers.
If you operate four or more Restaurants, we may require you to hire one or more additional Managers to serve as a Director of Operations to provide additional support and supervision to multiple Restaurants. Your Directors of Operations must meet any minimum standards for such position and must complete the Management Training Program and any other training programs that we specify to our satisfaction.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 75–76)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are not required to participate in the daily operations of the restaurant. However, Moe's Southwest Grill does not recommend that franchisees consider this an absentee management opportunity.
While not mandatory, individual owners or owners of an entity can serve as the Primary Contact or a Manager with the consent of Moe's Southwest Grill. The Primary Contact is responsible for the restaurant's operation and must have at least a 5% stake in the franchise entity. This individual must also complete Primary Contact Training to the satisfaction of Moe's Southwest Grill. The Primary Contact can also serve as one of the two required managers if it is their full-time job and they complete the Management Training Program.
Moe's Southwest Grill requires franchisees to appoint two dedicated managers for each restaurant. These managers must have day-to-day management responsibilities, provide on-site supervision, and actively participate in the restaurant's operations. These managers may or may not be owners. If a franchisee operates four or more restaurants, Moe's Southwest Grill may require the franchisee to hire one or more additional managers to serve as a Director of Operations to provide additional support and supervision to multiple restaurants.