What is the significance of the closing of all T.J. Cinnamons locations for potential Moes Southwest Grill franchisees?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
or Arby's, have not offered franchises in any other line of business.
Arby's is a franchisor of quick-serve restaurants operating under the Arby's® trade name and business system that feature slow-roasted, freshly sliced roasted beef and other deli-style sandwiches. In July 2011, Arby's became an Affiliated Program through an acquisition. Arby's has been franchising since 1965. Predecessors and former affiliates of Arby's have, in the past, offered franchises for other restaurant concepts including T.J. Cinnamons® stores that served gourmet baked goods. All of the T.J. Cinnamons locations have closed. As of December 29, 2024, there were 3,365 Arby's restaurants operating in the United States (2,286 franchised and 1,079 company-owned), including one multi-brand location. Additionally, as of December 29, 2024, there were 231
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 10–23)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, the closure of all T.J. Cinnamons locations is mentioned in the context of Arby's, an affiliated program through an acquisition in July 2011. Arby's predecessors and former affiliates had previously offered franchises for other restaurant concepts, including T.J. Cinnamons. The fact that all T.J. Cinnamons locations have closed could indicate the risks associated with investing in a franchise, even those associated with established brands. It demonstrates that market conditions, changing consumer preferences, or operational challenges can lead to the failure of a franchise concept.
For a potential Moe's Southwest Grill franchisee, this information serves as a reminder to conduct thorough due diligence before investing. While Moe's Southwest Grill is currently an active franchise system, the history of T.J. Cinnamons highlights the importance of evaluating the long-term viability of any franchise. This includes analyzing market trends, understanding the competitive landscape, and assessing the franchisor's ability to adapt to changing conditions.
Furthermore, the FDD's mention of Arby's and its affiliation with Moe's Southwest Grill through GoTo Foods suggests that Moe's is part of a larger portfolio of franchise brands. This could be seen as both a benefit and a risk. The benefit is that Moe's Southwest Grill may have access to resources and expertise from its parent company and affiliated brands. The risk is that decisions made at the parent company level could impact the Moe's Southwest Grill franchise system, as could the performance of other brands in the GoTo Foods portfolio.
Therefore, a prospective franchisee should consider the T.J. Cinnamons example as a cautionary tale and carefully evaluate the Moe's Southwest Grill franchise opportunity. They should investigate the brand's performance, the strength of its management team, and the level of support provided to franchisees. Additionally, they should assess the potential impact of being part of a larger franchise portfolio and understand the risks and benefits associated with this structure.