What is the required notice period for a Moes Southwest Grill customer to request the removal of any Equipment?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Customer may request the removal of any Equipment upon thirty (30) days prior written notice to Company. Removal of Equipment will not affect the term of any agreement between the parties. If this Lease is terminated with respect to any piece of Equipment for any reason prior to 100 months from the Commencement Date for that piece of Equipment, Customer will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation and (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment. Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been returned to Company and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a customer, which in this case refers to the franchisee, must provide thirty days prior written notice to the company, or franchisor, to request the removal of any leased equipment. This equipment includes beverage dispensers and may also include permanent merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment provided by the company.
However, the removal of equipment does not affect the term of any agreement between the parties. If the lease is terminated for any piece of equipment before 100 months from its installation date, the franchisee will be responsible for covering the actual cost of removal, including shipping and handling, remanufacturing, and the unamortized portion of installation and non-serialized parts. These costs are collectively referred to as "unbundling costs."
This clause protects Moe's Southwest Grill from losses incurred if equipment is removed prematurely, ensuring they recoup costs associated with installation and potential remanufacturing. Prospective franchisees should consider these potential costs when evaluating the financial implications of the franchise agreement, especially if they anticipate needing to remove or replace equipment before the 100-month mark. It is also important to note that the terms of the lease will remain in effect until the equipment is returned to the company, even after the expiration or termination of any agreement into which the lease is incorporated.