Under what conditions must a Moes Southwest Grill franchisee immediately suspend operations?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
12.4 Failure to Comply with Laws or Standards.
- A.
Suspension of Operations.
If: (i) any Approved Product you produce or sell evidences dilution or adulteration from the Standards; (ii) any Approved Product you produce or sell is contaminated or is otherwise in violation of applicable Law; (iii) you fail to maintain the Franchised Business in compliance with applicable Law; or (iv) your Franchised Business or Approved Products pose a threat to the health or safety of the public, you must immediately suspend operations, search out and destroy any adulterated, diluted, or contaminated Approved Products, eliminate their source, and remedy all unsanitary, unsafe, or otherwise hazardous conditions present.
You may not resume operation of the Franchised Business until our laboratory analysis of your Approved Products or inspection of your Franchised Business, as applicable, demonstrates compliance with all applicable Laws and Standards.
You must promptly implement any remedial measures we require to cure the default.
If we conclude through any examination, analysis, and/or inspection that the Approved Products have been adulterated in any way or that your Franchised Business is not in compliance with applicable Laws, you shall, upon demand, reimburse us for all reasonable expenses connected with any such examination, analysis, or inspection under this
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a franchisee must immediately suspend operations under specific conditions related to product quality, legal compliance, and public safety. If any Approved Product produced or sold shows signs of dilution or adulteration from established standards, or if any product is contaminated or violates applicable laws, the franchisee is required to halt operations.
Additionally, immediate suspension is mandated if the franchisee fails to maintain the business in compliance with applicable laws or if the business or its products pose a threat to public health or safety. In such cases, the franchisee must also search out and destroy any compromised products, eliminate the source of the problem, and correct any unsanitary, unsafe, or hazardous conditions.
The franchisee can only resume operations after Moe's Southwest Grill conducts a laboratory analysis of the products or inspects the business to ensure compliance with all applicable laws and standards. Furthermore, the franchisee is obligated to implement any remedial measures required by Moe's Southwest Grill to rectify the default. The franchisee is also responsible for reimbursing Moe's Southwest Grill for all reasonable expenses related to any examination, analysis, or inspection if the Approved Products are found to be adulterated or the business is not compliant with applicable laws.