For Moes Southwest Grill, are there circumstances under which fees may not be imposed uniformly?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise stated, we directly impose all the fees in this table, you pay them to us, and we do not refund them. We endeavor to impose these fees uniformly but reserve the right to make variances in special circumstances. We reserve the right to collect all fees due to us under the Franchise Agreement through EFT. We may change the Payment Due Date, and any other due dates, in the Manuals or in a written notice to you.
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, while the company endeavors to impose fees uniformly, it reserves the right to make variances in special circumstances. This means that while Moes Southwest Grill aims to apply fees consistently across all franchisees, there are situations where they may deviate from this standard.
For a prospective franchisee, this implies that the fees listed in Item 6 of the FDD might not always be applied in the exact same manner. The franchisor retains the discretion to adjust fees based on circumstances they deem special. It is important to note that the FDD does not define what constitutes "special circumstances," leaving it open to interpretation by Moes Southwest Grill.
This clause provides Moes Southwest Grill with flexibility but also introduces a degree of uncertainty for franchisees. It is advisable for potential franchisees to seek clarification from Moes Southwest Grill regarding the types of situations that could lead to fee variances. Understanding these potential exceptions can help franchisees better anticipate and manage their financial obligations. Additionally, the franchisor may reduce or waive the Grand Opening Obligation if the Restaurant is located in a Captive Audience Location (as defined in Item 12).
Overall, while uniformity in fees is the stated goal, the possibility of variances exists, and franchisees should be aware of this provision. It is a common practice in franchising for franchisors to retain some flexibility in fee structures to address specific situations or market conditions, but the lack of specific criteria for these variances means that prospective franchisees should engage in thorough due diligence to understand the potential financial implications.