What is the Royalty Fee for a Moes Southwest Grill franchise, and is it refundable?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Royalty Fee. You must pay to us a recurring, non-refundable royalty fee in the amount and at the times specified in Schedule A (the "Royalty Fee"). Concurrent with these payments, you must submit to us any reports or statements required under Section 14.3 (Systems and Reports).
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, franchisees must pay a recurring royalty fee. This royalty fee is specified in Schedule A of the Franchise Agreement. The FDD explicitly states that this royalty fee is non-refundable.
In practical terms, this means that once a Moe's Southwest Grill franchisee pays the royalty fee, they cannot get it back under any circumstances. This is a standard practice in franchising, as royalty fees represent ongoing compensation to the franchisor for the use of their brand, system, and support.
Prospective franchisees should carefully review Schedule A of the Franchise Agreement to understand the exact amount and payment schedule of the royalty fee. Understanding this non-refundable commitment is crucial for assessing the financial viability of the Moe's Southwest Grill franchise.