Under what condition can Moes Southwest Grill suspend its obligation to sell goods to a franchisee?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
If we or our Approved Suppliers are unable to supply you with the quantity and type of Goods you request, we will exert reasonable commercial efforts to allocate, or to cause our Approved Suppliers to allocate, the Goods available on an equitable basis among the Businesses that seek to purchase Goods.
You acknowledge that we, our affiliates, and our Approved Suppliers will not be liable if we, our affiliates, or our Approved Suppliers are unable to fulfill your requests.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Moe's Southwest Grill or its approved suppliers are not obligated to supply a franchisee with the quantity and type of goods requested if they are unable to do so. However, Moe's Southwest Grill will exert reasonable commercial efforts to allocate, or to cause their Approved Suppliers to allocate, the Goods available on an equitable basis among the Businesses that seek to purchase Goods.
This means that if there are shortages or supply chain issues, Moe's Southwest Grill will attempt to distribute available goods fairly among all franchisees. However, a franchisee cannot hold Moe's Southwest Grill, its affiliates, or its approved suppliers liable if they cannot fulfill the franchisee's requests due to supply issues.
This clause protects Moe's Southwest Grill from liability in situations beyond their control, such as natural disasters, supplier bankruptcies, or other disruptions to the supply chain. It is a fairly standard clause in franchise agreements, as it is impossible for a franchisor to guarantee a constant and uninterrupted supply of goods in all circumstances.