Under what conditions is a Moes Southwest Grill franchisee required to pay a de-identification fee?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
on, times the lesser of the remainder of term of the Franchise Agreement or 36 months. | | Appraiser's Fee | 50% of appraiser's fee. | On invoice | You must pay this fee only if we elect to | | | | | purchase your assets on termination or | | | | | expiration of the Franchise Agreement and |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| we cannot agree with you on the purchase price. | |||
| Indemnification | Our costs and | On invoice | You indemnify us from certain losses and |
| of us | expenses. | expenses under the Franchise Agreement. | |
| Attorneys' Fees | Our costs and expenses. | On invoice | You must pay us any attorneys' fees we incur related to you, your Owners, or your Restaurant (other than those we incur in response to your efforts to enforce the Franchise Agreement or in the defense of any claim we assert against you on which you substantially prevail in court or other formal legal proceedings). If we become a party to a proceeding on an agreement between us and you, and we win, or if we become a party to litigation or insolvency proceedings for your franchise, then you must pay our reasonable attorneys' fees and court costs. If we terminate the Franchise Agreement for your default, you must pay us all our expenses from your default or termination, including reasonable attorneys' and experts' fees. |
| Reinstatement Fee | 10% of the amount of the then-current Initial Franchise Fee, plus Royalty Fees that would have been payable in period between termination and reinstatement. | Before reinstated | If we terminate your Franchise Agreement due to a health and safety default, you cure the default and want to be reinstated, and we agree to reinstate your Franchise Agreement, you must pay us a reinstatement fee. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, a franchisee may be required to pay a de-identification fee. This fee is incurred if Moe's Southwest Grill terminates the Franchise Agreement, and the franchisee fails to properly de-identify the restaurant as a former Moe's location. In this case, Moe's Southwest Grill or its affiliates will make the required changes to de-identify the restaurant on behalf of the franchisee.
The amount of the de-identification fee is based on the actual costs and expenses incurred by Moe's Southwest Grill or its affiliates to de-identify the restaurant. In addition to these costs, the franchisee must also pay interest on the costs, as well as an administrative fee equal to 15% of the actual costs and expenses.
This fee covers expenses that Moe's Southwest Grill incurs to remove branding, signage, and other elements that identify the location as a former Moe's Southwest Grill restaurant. This ensures that the restaurant no longer represents the Moe's Southwest Grill brand after the franchise agreement has been terminated. Franchisees should be aware of these potential costs upon termination of their agreement.