Under the Moes Southwest Grill dispensing equipment lease, what is included as 'Equipment'?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Company hereby leases to Customer all beverage dispensers provided to Customer ("Equipment"), subject to the terms and conditions set forth in this Lease. Unless otherwise agreed in writing, the Equipment will also include, where applicable, all permanent merchandising, menu boards, refrigeration units, ice makers and water filtration equipment provided by Company. Each piece of Equipment is leased commencing on its installation date (the "Commencement Date"). Customer may request the removal of any Equipment upon thirty (30) days prior written notice to Company. Removal of Equipment will not affect the term of any agreement between the parties. If this Lease is terminated with respect to any piece of Equipment for any reason prior to 100 months from the Commencement Date for that piece of Equipment, Customer will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation and (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment. Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs."
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the dispensing equipment lease defines 'Equipment' as all beverage dispensers provided to the franchisee. Unless otherwise agreed in writing with Moe's Southwest Grill, the equipment includes permanent merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment provided by the company. Each piece of equipment is leased starting from its installation date.
This means that as a Moe's Southwest Grill franchisee, you are leasing this equipment from the company to dispense beverages. The equipment covered extends beyond just the dispensers themselves to include items necessary for merchandising and operation.
It is important to note that the franchisee can request removal of equipment with 30 days written notice; however, if the lease is terminated before 100 months from the installation date, the franchisee will be responsible for unbundling costs. These costs include the actual cost of removal, shipping, handling, remanufacturing, installation, non-serialized parts, pumps, racks, regulators and other ancillary equipment.