Under what condition might Moes Southwest Grill reduce or waive the Grand Opening Obligation?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| We may, in our sole discretion, | |
|---|---|
| reduce or waive the Grand Opening Obligation if your Restaurant is located in a Captive Audience | |
| Location (as defined in Item 12). |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, the franchisor may reduce or waive the Grand Opening Obligation if the restaurant is located in a Captive Audience Location. Item 12 of the FDD defines what constitutes a Captive Audience Location.
For a prospective franchisee, this means that if they are opening a Moes Southwest Grill in a location with limited access to outside competition, such as an airport, military base, or university campus, they may be able to negotiate a reduction or waiver of the grand opening expenses typically required. This could significantly lower the initial investment needed to launch the franchise.
The decision to reduce or waive the Grand Opening Obligation is at the sole discretion of Moes Southwest Grill. Therefore, franchisees should not assume they will automatically receive this benefit, even if their location qualifies as a Captive Audience Location. It is important to discuss this possibility with the franchisor during the negotiation phase and understand the specific criteria they use to make this determination.