Who is responsible for negotiating the terms of the Site Agreement for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be solely responsible for negotiation of the terms of the Site Agreement and performance under the Site Agreement.
We will have the right, but not the obligation, to review your Site Agreement prior to its execution to verify its compliance with our requirements. (Franchise Agreement, Section 5.4)
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the franchisee is solely responsible for negotiating the terms of the Site Agreement. This agreement encompasses the lease, sublease, or rental agreement (Lease) or purchase agreement (Purchase Agreement) for the restaurant location.
This means that prospective Moes Southwest Grill franchisees must handle all negotiations with landlords or sellers themselves. While Moes Southwest Grill may offer assistance in site selection and has the right to review the Site Agreement for compliance with their requirements, the ultimate responsibility for securing favorable terms rests with the franchisee.
It is crucial for franchisees to engage their own independent experts, such as real estate attorneys or consultants, to evaluate the suitability of the proposed site and assist in the negotiation process. The franchisor disclaims any responsibility for the suitability of the location, emphasizing the importance of the franchisee's due diligence. The franchisee is also responsible for performing under the Site Agreement once it is finalized.
Moes Southwest Grill's review of the Site Agreement does not constitute a guarantee of the location's success, but rather an assessment of whether the site meets the brand's minimum criteria. Therefore, franchisees should not rely solely on the franchisor's approval and should conduct their own thorough investigation and negotiation to protect their interests.