What is the range of non-compliance fees that Moes Southwest Grill can charge for violations of standards or the agreement?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
etermine that there has been any repetition during the Term of any occurrence under Section 12.4.A., then you will pay us a fee for the inspection or analysis in the amount of $5,000; plus the travel and living expenses of our inspectors or representatives and any other expenses we incur in connection with this Section, including our attorneys' fees.
- C. Remedies Not Exclusive. The remedies stated in this Section 12.4 are in addition to, and not in substitution of, any other remedies stated in this Section 12.4 or elsewhere in this Agreement. Nothing in this Section 12.4 limits any of our rights under Section 17 (Default and Termination), including the right to terminate this Agreement.
- D. Non-compliance Fees. If you fail to comply with any o
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, franchisees may be subject to non-compliance fees for failing to adhere to the brand's standards or any provision within the Franchise Agreement. These fees serve as a financial penalty for operational shortcomings and are in addition to any other remedies Moes Southwest Grill might pursue. The fees are communicated to franchisees in writing.
The current range for these non-compliance fees is $25 to $500 per single violation. However, these fees are not static; Moes Southwest Grill retains the right to modify them periodically, provided they give written notice to the franchisee. The frequency of these charges can also vary, with the potential for daily assessments if the non-compliance is ongoing, creating a significant financial burden if issues are not promptly addressed.
The amount of the non-compliance fees can fluctuate based on several factors, including the severity and number of defaults, as well as whether the defaults have been repeated. Furthermore, Moes Southwest Grill can increase these fees annually, but the increase is subject to an 'Allowed Adjustment,' which likely refers to a pre-defined limit on how much the fees can be raised in a given year. This system of non-compliance fees is designed to ensure that franchisees maintain the standards of the Moes Southwest Grill brand, but it also introduces a financial risk that franchisees must be aware of and prepared to manage.