Can an owner of a Moes Southwest Grill franchise serve as the Primary Contact or Manager?
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.
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 the 2025 Moe's Southwest Grill Franchise Disclosure Document, an owner can serve as the Primary Contact or a Manager with certain stipulations. While franchisees are not required to participate in the daily operations of the restaurant, they may do so with the consent of Moe's Southwest Grill.
To serve as the Primary Contact, the individual must be acceptable to Moe's Southwest Grill and have decision-making authority over the restaurant's operations. The Primary Contact must also hold a direct or indirect legal or beneficial interest of 5% or more in the franchisee's entity, or have a written agreement to increase their interest to that level. The Primary Contact must also successfully complete Primary Contact Training.
Furthermore, the Primary Contact can also serve as one of the two required Managers 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. The Managers must have day-to-day management responsibility for the restaurant, exercise on-premises supervision, and personally participate in the direct operation of the Restaurant. Moe's Southwest Grill emphasizes that they do not recommend investing in a restaurant for those solely interested in absentee management.