What is the standard initial franchise fee for a Moes Southwest Grill franchise?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ptember 2026, including precautions and response measures for credentialstuffing attacks.
Other than these actions, no litigation is required to be disclosed in this Item.
ITEM 4
BANKRUPTCY
No bankruptcy is required to be disclosed in this Item.
ITEM 5
INITIAL FEES
Initial Franchise Fee. When you sign your Franchise Agreement you must pay us an initial franchise fee (the "Initial Franchise Fee") of $30,500. We will not refund any part of the Initial Franchise Fee paid under the Franchise Agreement.
We reserve the right to reduce the Initial Franchise Fee under certain circumstances, including: (i) as an economic incentive for a franchisee to open a certain location, with the determination made on a case-by-case review of all relevant economic factors; (ii) as an inducement for existing operators to open additional Restaurants; (iii) as an inducement for someone to reopen a closed Restaurant; (iv) as an inducement for someone to take over an operating Restaurant; (v) as an inducement for a professional multi-unit operator to open several Restaurants; or (vi) to allow a franchisee to have additional money to spend on restaurant improvements and marketing during the first 12 months of operation. The amount of any reduction will be made on an individual basis and may depend on the condition of the premises, the need for upgrades and remodeling, any special circumstances that we may consider appropriate, and/or other considerations. In addition, we may allow a new franchisee to apply part of their Initial Franchise Fee to the cost of needed improvements or equipment. We may modify or cease offering any discount or incentive programs at any time.
We participate in the International Franchise Association's VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.
If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Restaurants, we may, in our sole discretion, offer a reduced Initial Franchise Fee for each Restaurant that you develop. You must pay us all of the Initial Franchise Fees for all of the Restaurants that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Restaurants by the
deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.
During the 2024 calendar year, franchisees paid Initial Franchise Fees ranging from $10,000 to $30,500.
Source: Item 5 — Initial Fees (FDD pages 28–30)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,500. This fee is payable when the Franchise Agreement is signed and is non-refundable. However, the FDD indicates that this fee may be reduced under certain circumstances. These circumstances include providing economic incentives for opening in specific locations, inducing existing operators to open additional restaurants, reopening closed restaurants, taking over operating restaurants, attracting professional multi-unit operators, or providing additional funds for restaurant improvements and marketing during the first year of operation. The amount of any reduction is determined on a case-by-case basis, considering factors such as the condition of the premises and the need for upgrades.
Moes Southwest Grill also participates in the International Franchise Association's VetFran program, offering a reduced initial franchise fee of $20,000 for qualifying veterans or members of the Armed Forces. Additionally, a reduced initial franchise fee may be offered for franchisees who sign multiple Franchise Agreements with a Multi-Unit Addendum to develop a set number of restaurants. However, the initial franchise fees for all restaurants committed to must be paid upfront, and no refunds are given if the development deadlines are not met or if any Franchise Agreements are terminated.
The 2025 FDD also notes that during the 2024 calendar year, franchisees paid initial franchise fees ranging from $10,000 to $30,500, indicating that the initial fee is negotiable under certain circumstances. In rare cases, Moes Southwest Grill may permit installment payments of the initial franchise fee, with terms negotiated individually with the franchisee. This provides some flexibility for prospective franchisees who may need alternative payment arrangements.