Under what circumstances can the Moes Southwest Grill franchise agreement be modified or amended?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Site Agreement Modifications.
You must submit a copy of any proposed modification, amendment, or renewal of the Site Agreement (a "Site Agreement Change") (along with a true and complete copy of the then-existing Site Agreement) to us for our review and approval prior to executing such documents, not less than 10 days prior to the proposed effective date of such modification, amendment, or renewal.
Our review of the proposed Site Agreement Change will be limited to ensuring that it is compliant with the terms of this Agreement.
Our acceptance of the Site Agreement Change shall not be unreasonably withheld and may be conditioned upon the inclusion of terms in the Site Agreement acceptable to us, including those provisions as specified in Section 5.4.C. (Preferred Lease Terms).
If you renew a Lease or a Lease is extended by the landlord for a period of 12 months or more, we may require you to pay us our then-current lease renewal fee, which may be increased in any calendar year by no more than the Allowed Adjustment.
We will notify you in writing whether we approve of the proposed Site Agreement Change.
If approved and subsequently signed, you must provide us with a copy of the signed Site Agreement Change within 15 days after its execution.
We may charge you a Lease Documentation Late Fee if you fail to timely provide the modified or renewed Site Agreement.
- E.
Subleases.
We reserve the right, directly or through an affiliate, to master lease any location and then sublet the location to you.
Concurrently, with the execution of the Franchise Agreement, you may enter into a sublease with us if an acceptable site has been identified and we are or will be the master lessee of such site.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, modifications or amendments to the Site Agreement, which appears to be a lease or property agreement, require specific procedures. The franchisee must submit any proposed modification, amendment, or renewal of the Site Agreement, along with a copy of the existing agreement, to Moe's Southwest Grill for review and approval at least 10 days before the proposed effective date.
The review by Moe's Southwest Grill will focus on ensuring the changes comply with the terms of the Franchise Agreement. Approval will not be unreasonably withheld but may be conditional upon including terms acceptable to Moe's Southwest Grill, particularly those specified in Section 5.4.C concerning preferred lease terms. If a lease is renewed or extended by the landlord for 12 months or more, Moe's Southwest Grill may require the franchisee to pay the then-current lease renewal fee, which can increase annually by no more than the Allowed Adjustment.
Moe's Southwest Grill will provide written notification of approval or disapproval of the proposed changes. If approved and signed, the franchisee must provide a copy of the signed Site Agreement Change within 15 days of execution. Failure to provide the modified or renewed Site Agreement on time may result in a Lease Documentation Late Fee. Moe's Southwest Grill also reserves the right to master lease any location and sublet it to the franchisee.