What are some of the requirements that Moe's Southwest Grill places on suppliers before they are approved?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Before we approve a Supplier, we will require the following, among other things: (i) the Supplier must demonstrate that it is able to supply the item or services to you in accordance with our Standards, including our standards as to the artwork and text on the items; (ii) if the Supplier is to receive access to any of our Confidential Information (defined below), Trade Secrets (defined below), or logos, the Supplier must sign a confidentiality agreement and/or our standard form license agreement we prepare; (iii) the Supplier must demonstrate that it is in good standing in the business community with respect to its financial soundness and the reliability of its products or services; and (iv) the Supplier must sign all agreements we require our suppliers to sign at that time.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, Moe's Southwest Grill has specific requirements for suppliers before they are approved to provide goods or services to franchisees. These requirements ensure that suppliers meet Moe's Southwest Grill's standards and protect the brand's reputation and confidential information.
Before a supplier can be approved, Moe's Southwest Grill requires that the supplier demonstrate its ability to provide items or services that meet the brand's standards, including standards for artwork and text on items. If the supplier will have access to confidential information, trade secrets, or logos, they must sign a confidentiality agreement and/or Moe's Southwest Grill's standard form license agreement. The supplier must also prove that they are in good standing within the business community, demonstrating financial soundness and reliability in their products or services. Finally, the supplier is required to sign all agreements that Moe's Southwest Grill requires its suppliers to sign at that time.
These requirements are typical in franchising, as franchisors need to maintain consistency and quality across all locations. By setting strict supplier requirements, Moe's Southwest Grill aims to control the quality of products and services used in its franchises, which helps protect its brand and ensure customer satisfaction. Franchisees must adhere to these approved suppliers to maintain compliance with the franchise agreement.