What is a prohibited action regarding shareholders' agreements for a Moes Southwest Grill franchise entity?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
No employee or other person speaking on our behalf has made any statement or promise regarding the actual, average or projected profits or earnings, the likelihood of success, the amount of money you may earn, or the total amount of revenue a Moe's® franchise will generate, that is not contained in the Disclosure Document or that is contrary to, or different from, the information contained in the Disclosure Document. Initial 7. You understand that the Franchise Agreement contains the entire agreement between us and you concerning the franchise for the Moe's® franchise, meaning any prior oral or written statements not set out in the Franchise Agreement will not be binding. YOU UNDERSTAND THAT YOUR ACKNOWLEDGEMENT OF THE STATEMENTS ABOVE ARE IMPORTANT TO US AND THAT WE WILL RELY ON THEM. BY SIGNING THIS ACKNOWLEDGEMENT, YOU ARE REPRESENTING THAT YOU HAVE CONSIDERED EACH STATEMENT CAREFULLY AND THAT EACH STATEMENT IS ACCURATE AND TRUTHFUL.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
Based on the 2025 Moe's Southwest Grill Franchise Disclosure Document, a franchisee cannot make statements or promises regarding potential profits, earnings, or revenue from a Moe's franchise that are not included in the Disclosure Document or that contradict the information provided within it. This restriction is highlighted in the acknowledgement section of the franchise agreement, which the franchisee must review and confirm.
This requirement ensures that prospective franchisees are not influenced by unauthorized or misleading financial projections. Moe's Southwest Grill aims to provide a transparent and standardized set of information through its official Disclosure Document, which serves as the basis for evaluating the franchise opportunity.
A franchisee's acknowledgement of these statements is crucial, as Moe's Southwest Grill relies on this confirmation to ensure that the franchisee has received and understood the official information. Any deviation from this process, such as discovering an inaccurate statement, requires immediate notification to the Senior Vice President of Franchise Administration. This measure protects both the franchisee and the franchisor by maintaining the integrity of the franchise agreement and the information it contains.