What does the Repeated Inspection Fee for a Moes Southwest Grill franchise cover?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
tion at another inspection within one year, (ii) you fail to comply with any remedial measures we require, (iii) you fail to cooperate in any inspection, or (iv) there have been repeated violations, then you must pay up to a $5,000 fee for the inspection, in addition to the travel expenses |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| of our inspectors or representatives and any | |||
| other | |||
| expenses | |||
| we | |||
| incur, | |||
| including | |||
| attorneys' fees. These remedies are not | |||
| exclusive. The fees may be increased in any | |||
| calendar year by no more than the Allowed | |||
| Adjustment. | |||
| Development Deadline Extension Fee | $2,500 per missed deadline. |
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 Repeated Inspection Fee covers the costs associated with inspections resulting from a franchisee's repeated or ongoing failure to comply with the Franchise Agreement. This fee includes a $500 non-compliance charge, plus any costs incurred by Moes Southwest Grill from third-party inspectors or other related expenses. These expenses can include the travel and living costs of Moes Southwest Grill's representatives during the inspection.
In practical terms, this means that if a Moes Southwest Grill franchisee consistently fails to meet the brand's standards or violates the Franchise Agreement, they will be responsible for covering the expenses of any additional inspections required to address these issues. This fee is invoiced to the franchisee.
This policy incentivizes franchisees to maintain compliance with the Franchise Agreement to avoid incurring additional costs. The fact that the fees may be increased annually by the Allowed Adjustment means that franchisees should budget for potential increases in inspection costs. Franchisees should familiarize themselves with all aspects of the Franchise Agreement to minimize the risk of non-compliance and the resulting inspection fees.