Under what circumstances might a Moes Southwest Grill franchisee request to relocate their Restaurant?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
You may request to relocate your Restaurant if you lose the right to operate at the Accepted Location or provide other business justifications for the relocation. You may not relocate your Restaurant unless we approve the relocation in advance in writing. We have not established a set of conditions or criteria under which we evaluate or approve relocation requests, except that you must comply with our site approval process, must be in compliance with all terms of the Franchise Agreement, and must have the funds available to relocate the Restaurant and to construct a new Restaurant according to our then-current design standards. We are under no obligation to approve a proposed relocation of the Restaurant. If you lose the right to occupy the premises where you are operating your Restaurant, we may, in our sole discretion, terminate your Franchise Agreement.
Source: Item 12 — Territory (FDD pages 68–72)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, a franchisee may request to relocate their restaurant under specific circumstances, primarily if they lose the right to operate at their current, accepted location. Additionally, a franchisee can request relocation if they provide other business justifications deemed acceptable by Moes Southwest Grill. However, the FDD does not provide a defined set of conditions or criteria that Moes Southwest Grill uses to evaluate or approve these relocation requests.
To relocate, a Moes Southwest Grill franchisee must adhere to the brand's site approval process, remain in compliance with all terms outlined in the Franchise Agreement, and demonstrate the availability of sufficient funds to cover the relocation expenses and the construction of a new restaurant that meets Moes Southwest Grill's current design standards. It's important to note that Moes Southwest Grill is under no obligation to approve a proposed relocation. Furthermore, if a franchisee loses the right to occupy their current premises, Moes Southwest Grill retains the right to terminate the Franchise Agreement at its discretion.
If Moes Southwest Grill approves a relocation request, the Site Agreement for the new location must comply with the existing Franchise Agreement. The franchisee is responsible for de-identifying the former site. Moes Southwest Grill may charge a Relocation Fee, and may also require the franchisee to pay a minimum royalty during any period when the restaurant is not operational. Additionally, Moes Southwest Grill may require the franchisee to sign the then-current Franchise Agreement, which could contain terms that differ materially from the existing agreement, or an amendment to the existing Franchise Agreement.
If the lease term for the new location extends beyond the current Franchise Agreement's term, Moes Southwest Grill has the option to extend the term of the existing or new Franchise Agreement to match the lease term, but the franchisee will be required to pay a Relocation Extension Fee. This highlights the importance of franchisees carefully considering all financial and contractual implications before requesting a relocation.