When is the payment due for the initial franchise fee for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
any calendar year will not exceed, at our option, (a) 50% of the fee that is in effect at the start of the calendar year or (b) the increase in the actual costs and expenses that we or our affiliates incur to provide such goods or services to you.
ITEM 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| | Amount of Expenditure | | Method of | When Payments | To Whom | |------------------------------------------------------------
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 41–47)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $30,500 to $30,500, is due in a lump sum. This payment is required at the signing of the Franchise Agreement. This fee grants the franchisee the right to operate a Moes Southwest Grill restaurant under the company's brand and system.
This upfront fee is a standard practice in franchising and covers Moes Southwest Grill's initial costs in granting the franchise, including evaluating the franchisee, providing initial training, and setting up the franchisee with the necessary resources and support. It's important to note that this fee is generally non-refundable, so prospective franchisees should carefully consider their decision before signing the Franchise Agreement.
Understanding when this fee is due is crucial for financial planning. The franchisee must have the full amount of $30,500 available at the time of signing. This is just one component of the total initial investment, which also includes costs for construction, equipment, and other expenses. Therefore, potential franchisees should review the entire Item 7 of the FDD to understand all the costs associated with opening a Moes Southwest Grill franchise.