What is the significance of time within the Moes Southwest Grill franchise agreement?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
NAL PAPER IF NECESSARY]:**
State Effective Dates
The following states have franchise laws that require that the Franchise Disclosure Document be registered or filed with the state, or be exempt from registration: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
This document is effective and may be used in the following states, where the document is filed, registered or exempt from registration, as of the Effective Date stated below:
| State | Effective Date |
|---|---|
| California | Exempt |
| Hawaii | Pending |
| Illinois | Exempt |
| Indiana | Pending |
| Maryland | Pending |
| Michigan | March 28, 2025 |
| Minnesota | Pending |
| New York | Exempt |
| North Dakota | Pending |
| Rhode Island | Pending |
| South Dakota | Pending |
| Virginia | Pending |
| Washington | Pending |
| Wisconsin | Pending |
Other states may require registration, filing, or exemption of a franchise under other laws, such as those that regulate the offer and sale of business opportunities or seller-assisted marketing plans.
Your Copy – Keep For Your Records
ITEM 23 RECEIPT
This Disclosure Document summarizes certain provisions of the franchise agreement and other information in plain language. Read this Disclosure Document and all agreements carefully.
If Moe's Franchisor SPV LLC offers you a franchise, we must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. Iowa requires that we provide you with this Disclosure Document at the earlier of the first personal meeting or 14 calendar days before you sign a binding agreement with, or make payment to, us or one of our affiliates in connection with the proposed sale.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, time is a significant factor in several aspects of the franchise agreement. The FDD must be provided to a prospective franchisee at least 14 calendar days before they sign a binding agreement or make any payment to Moe's Southwest Grill. However, specific states like Iowa, New York, and Michigan have their own timelines, requiring the disclosure document to be provided either 14 calendar days before signing or at the first personal meeting, or 10 business days before signing or making a payment. This ensures franchisees have adequate time to review the document and seek professional advice before committing.
Furthermore, if operating in Maryland, all initial fees and payments are deferred until Moe's Southwest Grill completes its pre-opening obligations under the Franchise Agreement. For franchisees signing a Multi-Unit Addendum, this deferral applies to all initial fees under each Franchise Agreement subject to the addendum. In Maryland, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.
Additionally, the POS System Support Services Agreement includes a "Service Start Date," which is estimated to be approximately twelve weeks prior to the anticipated opening date of the franchised business. Franchisees must also acknowledge that they cannot sign the Acknowledgment form the same day as the Receipt for the Franchise Disclosure Document, but they must sign and date it the same day they sign the Franchise Agreement and pay their franchise fee. These stipulations ensure that franchisees are fully informed and prepared before entering into the agreement and commencing operations.