Does Moes Southwest Grill have the right of first refusal to acquire my restaurant business?

According to Moes Southwest Grill's 2025 Franchise Disclosure Document, Moes Southwest Grill does have the right of first refusal to acquire a franchisee's restaurant business. Specifically, Section 16.8 of the Franchise Agreement grants Moes Southwest Grill the ability to match any offer made for the restaurant or substantially all interest in the franchisee's entity.

This provision means that if a franchisee receives an offer to purchase their Moes Southwest Grill restaurant, they must first present that offer to Moes Southwest Grill. Moes Southwest Grill then has the option to match the offer and purchase the restaurant themselves. This right of first refusal allows Moes Southwest Grill to maintain control over the ownership and operation of its franchise locations.

For a prospective franchisee, this implies that selling their Moes Southwest Grill restaurant may involve an additional step. They cannot simply accept the first offer they receive. Instead, they must provide Moes Southwest Grill with the opportunity to buy the restaurant on the same terms. This could potentially delay the sale process or limit the franchisee's options if Moes Southwest Grill chooses to exercise its right of first refusal. Franchisees should carefully consider this provision and its potential impact on their exit strategy when investing in a Moes Southwest Grill franchise.

It is also important to note that Moes Southwest Grill also has the option to purchase the franchisee's Goods related to the Restaurant at the fair market value (exclusive of good will) and may purchase the Accepted Location if the franchisee owns it or their interest in any lease, as detailed in Section 18.4 of the Franchise Agreement.