When is the Renewal Fee due to Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
match the term of your new lease, you must pay the Relocation Extension Fee in addition to the Relocation Fee. | | Refresh/ | Our then-current fee. | As incurred | You must refresh your Restaurant every five | | Remodel Site | Currently, $1,200 to | | years and must remodel your Restaurant |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| Survey and Design Fee | $6,000 depending on the scope of the required changes. | every ten years to meet our then-current Standards. We may require you to pay us, our affiliates, or our designee this fee to inspect your Restaurant and produce a site survey and/or design plan that will comply with these obligations. We may change this fee in any year by no more than the Allowed Adjustment. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the Renewal Fee is due before signing the renewal Franchise Agreement. The Renewal Fee is 20% of the then-current Initial Franchise Fee. This fee is payable to Moes Southwest Grill if the franchisee enters into a renewal term.
For a prospective franchisee, this means that upon deciding to renew their franchise agreement, they must pay Moes Southwest Grill a renewal fee equivalent to 20% of the initial franchise fee at that time, before the new agreement is signed. This could be a substantial cost, depending on how much the initial franchise fee has changed since the original agreement. Franchisees should factor this cost into their decision-making process when considering whether to renew their franchise agreement.
It is common practice in the franchise industry to charge a renewal fee, although the amount and timing can vary. Some franchisors may charge a flat fee, while others, like Moes Southwest Grill, base it on a percentage of the current initial franchise fee. The timing of the payment is also crucial, as it must be paid before the renewal agreement is finalized, ensuring that Moes Southwest Grill receives the fee before committing to the extended franchise term.