Under the Moes Southwest Grill franchise agreement, is Moes Southwest Grill allowed to delegate its obligations, and if so, to whom?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Company may assign this Agreement to any person or entity without Franchisee consent.
This Agreement will be binding on and inure to the benefit of the parties and their respective successors and permitted assigns.
In the event of an assignment of the Franchise Agreement which has been approved by Franchisor, this Agreement shall be deemed to be assigned to the assignee of the Franchise Agreement and such assignee shall be deemed to have assumed all rights and obligations of Franchisee under this Agreement.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the company may assign the Franchise Agreement to any person or entity without the franchisee's consent. Additionally, in the event that the Franchise Agreement is assigned and approved by Moe's Southwest Grill, the agreement will be considered assigned to the assignee. The assignee will then be assumed to have all the rights and obligations of the franchisee under the agreement.
This means that Moe's Southwest Grill has the right to transfer its responsibilities and benefits under the Franchise Agreement to another party without needing the franchisee's permission. This could be another company, an individual, or any other type of entity.
For a prospective franchisee, this clause indicates that the future of the franchise agreement could depend on an entity they did not initially agree to. While the assignee is bound by the original agreement, the franchisee should consider the possibility of working with a different entity than Moe's Southwest Grill during the term of the agreement.