When do payments for Comprehensive Support Fees for a Moes Southwest Grill franchise begin?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
service, value added or like taxes. In the event of a Franchisee Default (as defined below), Company reserves the right, but not the obligation, to suspend part or all of the Support Services until such Franchisee Default is cured; provided however, that Franchisee shall continue to pay Service Fees, during the Term of the Agreement notwithstanding any suspension of Support Services due to a Franchisee Default.
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- Amendments to Schedule A. Company reserves the right, but not the obligation, from time to time, to review the Support Services and Service Fees provided under this Agreement and, in its sole discretion, to amend Schedule A to reflect a change in Support Services or Service Fees, provided that any changes to the fees in 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 our or our affiliates' actual costs and expenses to provide the Support Services to you. Company shall provide Franchisee with notice of any amendment to Schedule A via e-mail or update to the Manuals at least ninety (90) days prior to such amendment taking effect.
6. Payment.
- a. Electronic Funds Transfer; Payment Date. Payments of Comprehensive Support Fees will be drafted by Franchisor on behalf of Company from Franchisee's Designated Bank Account under Franchisor's electronic funds transfer or draft system ("EFT") one time per month on the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month (the "Payment Date"). Payments shall commence on the Payment Date of the first (1st) full month following the Opening Date.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, payments for Comprehensive Support Fees will commence on the Payment Date of the first full month following the Opening Date. The Payment Date is the same day that royalties and other fees due under the Franchise Agreement are first drafted for each month. These payments are drafted by Moe's Southwest Grill via electronic funds transfer (EFT) from the franchisee's Designated Bank Account.
If the Franchised Business is temporarily closed and approved by Moe's Southwest Grill, payments of Comprehensive Support Fees will be suspended starting on the Payment Date of the first full month following the closure date. Payments will be reinstated on the Payment Date of the first full month following the date the closure ends, also subject to Moe's Southwest Grill's approval. However, Moe's Southwest Grill reserves the right to reinstate payments during the closure if the franchisee requests and Moe's Southwest Grill provides Support Services during that time.
The franchisee is responsible for notifying Moe's Southwest Grill and receiving approval for any temporary closure. Additionally, the franchisee must maintain sufficient funds in the Designated Bank Account to cover all Comprehensive Support Fees, as well as any other amounts drafted by EFT under the Franchise Agreement and the Manuals. This ensures timely payment and avoids potential issues such as return costs and administrative fees for non-payment.