What must a supplier demonstrate to Moe's Southwest Grill before being approved?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Before we approve a Supplier, we will require the following, among other things: (i) the Supplier must demonstrate that it is able to supply the item or services to you in accordance with our Standards, including our standards as to the artwork and text on the items; (ii) if the Supplier is to receive access to any of our Confidential Information (defined below), Trade Secrets (defined below), or logos, the Supplier must sign a confidentiality agreement and/or our standard form license agreement we prepare; (iii) the Supplier must demonstrate that it is in good standing in the business community with respect to its financial soundness and the reliability of its products or services; and (iv) the Supplier must sign all agreements we require our suppliers to sign at that time.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, before a supplier can be approved, they must meet several requirements. The supplier needs to demonstrate their ability to consistently supply items or services that meet Moe's Southwest Grill's standards. This includes adhering to specific standards for artwork and text on the items they provide.
Additionally, if the supplier gains access to Moe's Southwest Grill's confidential information, trade secrets, or logos, they are required to sign a confidentiality agreement or the standard form license agreement provided by Moe's Southwest Grill. This is a common practice to protect the franchisor's proprietary information and brand identity. The supplier must also prove they are in good standing within the business community, showing financial stability and reliability in their products or services.
Finally, the supplier is required to sign all agreements that Moe's Southwest Grill requires its suppliers to sign at that time. Moe's Southwest Grill also retains the right to inspect the facilities and goods of any approved supplier and can revoke approval if the supplier fails to meet the current criteria. If a revocation occurs, franchisees must stop purchasing or leasing from that supplier and dispose of any remaining inventory as directed by Moe's Southwest Grill. This ensures that Moe's Southwest Grill maintains control over its supply chain and product quality.