For Moes Southwest Grill, what is the purpose of providing the financial statements of GoTo Foods?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
As reflected in Item 1, GoTo Foods will be providing required support and services to franchisees under a management agreement with us. Attached as Exhibit A are the audited financial statements of GoTo Foods as of and for the fiscal years December 29, 2024 and December 31, 2023. These financial statements are being provided for disclosure purposes only. GoTo Foods is not a party to the Franchise Agreement or other agreement we sign with franchisees nor does it guarantee our obligations under the Franchise Agreement or other agreements we sign with franchisees.
Source: Item 21 — Financial Statements (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, the audited financial statements of GoTo Foods are included for disclosure purposes only. GoTo Foods provides support and services to Moes Southwest Grill franchisees under a management agreement with the company. However, GoTo Foods is not a party to the Franchise Agreement or any other agreements signed with franchisees. Therefore, GoTo Foods does not guarantee Moes Southwest Grill's obligations under the Franchise Agreement or other agreements.
While GoTo Foods provides essential services to Moes Southwest Grill franchisees, it's crucial to understand that its financial statements are for informational purposes and do not represent a guarantee of the franchise's financial stability. The financial statements of GoTo Systems, the parent company, are included because GoTo Systems guarantees the performance of Moes Southwest Grill's obligations under the Franchise Agreement.
Prospective franchisees should carefully review the financial statements of both GoTo Foods and GoTo Systems to assess the financial health of the entities involved in supporting the Moes Southwest Grill franchise system. Understanding the relationship between these entities and their respective roles is essential for making an informed investment decision. Franchisees should also note that GoTo Foods may delegate certain responsibilities to other affiliates, but Moes Southwest Grill remains responsible for all support and services required under the Franchise Agreement.