Under what circumstances might Moes Southwest Grill reduce the initial franchise fee?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ptember 2026, including precautions and response measures for credentialstuffing attacks.
Other than these actions, no litigation is required to be disclosed in this Item.
ITEM 4
BANKRUPTCY
No bankruptcy is required to be disclosed in this Item.
ITEM 5
INITIAL FEES
Initial Franchise Fee. When you sign your Franchise Agreement you must pay us an initial franchise fee (the "Initial Franchise Fee") of $30,500. We will not refund any part of the Initial Franchise Fee paid under the Franchise Agreement.
We reserve the right to reduce the Initial Franchise Fee under certain circumstances, including: (i) as an economic incentive for a franchisee to open a certain location, with the determination made on a case-by-case review of all relevant economic factors; (ii) as an inducement for existing operators to open additional Restaurants; (iii) as an inducement for someone to reopen a closed Restaurant; (iv) as an inducement for someone to take over an operating Restaurant; (v) as an inducement for a professional multi-unit operator to open several Restaurants; or (vi) to allow a franchisee to have additional money to spend on restaurant improvements and marketing during the first 12 months of operation. The amount of any reduction will be made on an individual basis and may depend on the condition of the premises, the need for upgrades and remodeling, any special circumstances that we may consider appropriate, and/or other considerations. In addition, we may allow a new franchisee to apply part of their Initial Franchise Fee to the cost of needed improvements or equipment. We may modify or cease offering any discount or incentive programs at any time.
We participate in the International Franchise Association's VetFran program. For qualifying veterans or members of the Armed Forces, the Initial Franchise Fee is $20,000.
If you sign multiple Franchise Agreements at the same time with a Multi-Unit Addendum to develop a set number of Restaurants, we may, in our sole discretion, offer a reduced Initial Franchise Fee for each Restaurant that you develop. You must pay us all of the Initial Franchise Fees for all of the Restaurants that you commit to develop at the time you sign the Franchise Agreements with a Multi-Unit Addendum. If you fail to develop any of the Restaurants by the
deadlines set forth therein or any Franchise Agreement(s) subject to the Multi-Unit Addendum are terminated, you will not receive a refund of any Initial Franchise Fees that you have prepaid.
During the 2024 calendar year, franchisees paid Initial Franchise Fees ranging from $10,000 to $30,500.
Source: Item 5 — Initial Fees (FDD pages 28–30)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,500; however, the company retains the right to reduce this fee under specific circumstances. These circumstances include offering economic incentives for opening in a particular location, which is determined after reviewing relevant economic factors on a case-by-case basis. Moes Southwest Grill may also lower the fee to encourage existing operators to open additional restaurants, to incentivize the reopening of a closed restaurant, or to facilitate the takeover of an already operating restaurant. Furthermore, a reduced fee may be offered to professional multi-unit operators who commit to opening several restaurants.
Another potential reason for a reduction in the initial franchise fee is to provide the franchisee with additional capital for restaurant improvements and marketing during the first year of operation. The amount of any reduction is determined individually, considering factors such as the condition of the premises, the need for upgrades or remodeling, and any other special circumstances deemed appropriate by Moes Southwest Grill. The company may also allow new franchisees to apply a portion of their initial franchise fee towards the cost of necessary improvements or equipment.
Moes Southwest Grill also participates in the International Franchise Association's VetFran program, offering a reduced initial franchise fee of $20,000 for qualifying veterans or members of the Armed Forces. Additionally, if a franchisee signs multiple franchise agreements simultaneously with a Multi-Unit Addendum to develop a set number of restaurants, Moes Southwest Grill may offer a reduced initial franchise fee for each restaurant developed, at their discretion. During the 2024 calendar year, franchisees paid initial franchise fees ranging from $10,000 to $30,500. In certain rare cases, Moes Southwest Grill may permit installment payments of the initial franchise fee, with terms negotiated individually with the franchisee. It is important to note that Moes Southwest Grill reserves the right to modify or discontinue any discount or incentive programs at any time.