What must the owners of a Moes Southwest Grill franchise transferee do if the transferee is not an individual?

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, if the transferee is not an individual, the owners of a legal or beneficial interest in the transferee must enter into a written assignment. This assignment, in a form satisfactory to Moe's Southwest Grill, requires them to assume, agree to discharge, and guarantee all of the original franchisee's obligations under the Franchise Agreement. Additionally, these owners must execute Moe's Southwest Grill's then-current form of personal guarantee.

This requirement ensures that Moe's Southwest Grill has recourse against individuals with a vested interest in the transferee entity, providing an additional layer of security and commitment to the franchise agreement. By requiring a personal guarantee, Moe's Southwest Grill aims to prevent franchisees from shielding themselves behind a corporate entity to avoid fulfilling their contractual obligations.

For a prospective franchisee, this means that if they plan to transfer their Moe's Southwest Grill franchise to a corporation, LLC, or other business entity, the owners of that entity will be personally responsible for upholding the terms of the franchise agreement. This is a common practice in franchising, as it aligns the interests of the franchisor and the individuals controlling the franchisee entity, ensuring a higher level of accountability and dedication to the success of the franchise.