Which sections of the Moes Southwest Grill franchise agreement survive the expiration or termination of the agreement?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- e. THE PROVISIONS OF THIS SECTION 11 SHALL SURVIVE EXPIRATION OR TERMINATION OF THIS AGREEMENT.
18. OBLIGATIONS ON EXPIRATION OR TERMINATION
- 18.1 General Obligations. On expiration or termination of this Agreement for any reason, you must:
- A. Immediately cease using the System, including the Marks and any confusingly similar names, marks, commercial symbols, systems, insignia, symbols, color schemes, trade dress, designs, procedures, domain names, and methods. If you fail or refuse to make changes to the Franchised Business required to distinguish the Franchised Business from its former appearance, we have the right, in addition to all other remedies, to enter the Accepted Location and make the required changes on your behalf, and you must pay to us all costs and expenses we or our affiliates incur in making the changes, including interest from the date of demand, plus an administrative fee in an amount equal to 15% of the costs and expenses that we or our affiliates incur.
- B. Immediately return to us: (i) all hard copies and electronic copies (capable of being returned) of the Confidential Information and Trade Secrets, including the Manuals, together with all copies of any of them; and (ii) all other manuals, records, files, instructions, correspondence and other materials relating to the operation of the Franchised Business ("Other Materials"). If you have on your computer systems, your e-mail accounts, or other digital storage systems or services copies of the Confidential Information, Trade Secrets, and/or Other Materials, you must immediately erase these copies. You must provide us with a certification attesting to the fact that all copies of the Confidential Information, Trade Secrets, and Other Materials in your control or the control of your officers, directors, owners, employees, agents, and representatives have been returned or destroyed in accordance with this Section.
- C. Within 5 days after expiration or termination, pay us and our affiliates the full amount you owe us and them.
- D. Immediately stop identifying yourself in any way as our franchisee or former franchisee.
- E. Immediately comply with the restrictive covenants in Section 15 (Confidential Information; Restrictive Covenants).
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Section 11 of the agreement, which pertains to remedies related to support services, survives the expiration or termination of the agreement.
Additionally, upon expiration or termination of the Franchise Agreement, the franchisee is obligated to immediately cease using the Moe's Southwest Grill System, including all related marks, symbols, and trade dress. The franchisee must also return all hard and electronic copies of confidential information and trade secrets, including manuals and other materials related to the business operation. Furthermore, the franchisee is required to pay all outstanding amounts owed to Moe's Southwest Grill and its affiliates, discontinue identifying as a franchisee, and comply with the restrictive covenants outlined in Section 15 concerning confidential information.
These obligations ensure the protection of Moe's Southwest Grill's brand and proprietary information, even after the franchise relationship ends. The survival of these clauses is a standard practice in franchising to maintain brand consistency and prevent unfair competition from former franchisees.