Can Moes Southwest Grill suspend a franchisee's participation in programs or benefits funded by advertising contributions?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Period), if we do not exercise our right to terminate the Agreement, we may, at our sole election and upon delivery of written notice to you, take any or all of the following actions:
- A. Suspend your access and use of the System or our websites (including your access or use of website pages), our applications, or our online ordering platforms;
- B. Suspend your or the Franchised Business's participation in any programs or benefits we offer, including any programs or benefits that are funded by Advertising Contributions;
- C. Suspend any other services that we or our affiliates provide to you under this Agreement or any other agreement;
- D. Suspend or terminate any temporary or permanent fee reductions to which we might have agreed (whether as a policy, in an amendment to this Agreement, or otherwise);
- E. Suspend our performance of, or compliance with, any of our obligations to you under this Agreement or other agreements; and/or
- F. Undertake or perform on your behalf any obligation or duty that you are required to, but fail to, perform under this Agreement. You will reimburse us upon demand for all costs and expenses that we or our affiliates reasonably incur in performing any such obligation or duty.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, Moe's Southwest Grill has the right to suspend a franchisee's participation in programs or benefits funded by advertising contributions under specific circumstances. This action can be taken if Moe's Southwest Grill does not exercise its right to terminate the Franchise Agreement following a default by the franchisee.
Specifically, Moe's Southwest Grill may elect to suspend a franchisee's or the franchised business's participation in any programs or benefits offered, including those funded by advertising contributions, upon delivering written notice to the franchisee. This is one of several actions Moe's Southwest Grill can take, which also include suspending access to the System, websites, applications, or online ordering platforms, suspending other services provided under the agreement, suspending fee reductions, suspending Moe's Southwest Grill's obligations to the franchisee, and performing obligations on behalf of the franchisee at the franchisee's expense.
This provision in the Franchise Agreement allows Moe's Southwest Grill to take corrective actions without immediately terminating the agreement, providing a mechanism to address franchisee defaults while still maintaining the business relationship. However, the franchisee remains responsible for all fees and obligations under the agreement even during the suspension. It is important for prospective franchisees to understand the conditions under which these suspensions can occur and the potential impact on their business operations and participation in advertising and other benefit programs.