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Moe's Southwest Grill Franchise Cost & Fees

Date of Incorporation: 2000
Franchising Since: 2001
Headquarters: Atlanta, Georgia

Business Description: Moe's Southwest Grill restaurants are fast casual restaurants featuring fresh-mex and southwestern food products. The franchisor is Moe's Franchisor LLC.

Franchise Offer: Franchisees conduct business under the service mark “Moe's Southwest Grill” and any other identifying marks and symbols that are used now, or are later developed by the franchisor, and uses the franchisor’s unique system for the establishment, development and operation of a Restaurant.

Financial Assistance: Moe’s does not offer financing for trade fixtures, opening inventory, or any other purpose. Moe’s may refer franchisees to leasing or financing companies not affiliated with them. Moe’s and its affiliates receive no fees or other financial benefits from any lender for franchisees’ financing. Currently, Moe’s will not guarantee a franchisee’s note, lease, or obligation, for any lender, or any other person or entity. Moe’s does participate in the SBA's Franchise Registry Program. Under the SBA's Franchise Registry Program, Moe’s will modify the Franchise Agreement to comply with SBA requirements for the franchisee to participate in certain SBA loan programs.

Training and Assistance:The franchisee must have two full-time Managers attend Moe’s initial management training program in Atlanta, Georgia consisting of approximately 2 ½ weeks of in-restaurant training at a certified training location, assigned online training pre-work, and assigned online training post-work. Neither the franchisees nor Managers may attend the Management Training Program until the Restaurant is under construction and the franchisee has provided a signed Site Agreement along with evidence of the insurance. In addition, training must be scheduled within 3 months of the scheduled opening date of the Restaurant. Moe’s may require the individuals who completed the Management Training Program to attend a refresher course if the Restaurant opens more than 3 months after you complete the Management Training Program. Moe’s currently provides Continued Professional Development programs for Roadie, management, and multi-unit employees.

Territory: The franchisee may receive an Area of Protection (AOP). The size and scope of the AOP will be in the Franchise Agreement and will be determined on a case-by-case basis. The factors that considered in determining the size of an AOP include current and projected market demand, demographics and population, median household income, presence of other businesses, location of competitors, traffic patterns, access and visibility, location of other Restaurants, future development plans and other market conditions. There is no minimum Area of Protection for a Restaurant. If the franchisee is not granted an Area of Protection, the franchisee will not receive a protected territory.

Term of Agreement and Renewal: The term of the franchise agreement is 20 years. If the franchisee meets the requirements, he or she can renew for an additional 20-year term.

Obligations and Restrictions: Franchisees are required to devote their best efforts to the proper and effective operation of the Restaurant. If the franchisee is an individual, he or she must either serve as a Manager or designate a Manager. If the franchisee is an Entity, the entity must designate a Manager, who may also be the Primary Contact. The Restaurant must retain two Certified Managers on staff during the first 90 days of operation and must have one Certified Manager on staff thereafter. The franchisee may offer in the Restaurant to customers only the Approved Products that Moe’s have approved in writing. The franchisee must produce and sell all Approved Products Moe’s specify, including all menu items and other products and services that Moe’s requires, as stated in the Manuals or otherwise, which are all part of the System.

Estimated Number of Units: 640

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $30,000 $30,000
Rent $4,500 $20,000
Leasehold Improvements $118,530 $391,000
Millwork $22,600 $35,000
Equipment Package $61,000 $126,000
Furniture $17,000 $24,000
Smallwares $10,000 $17,000
Menu Board, Graphics, Interior Signage $2,200 $9,000
Exterior Signage $5,000 $20,000
Computer Hardware/Software, Training $12,600 $23,700
TV, Music $1,500 $2,000
Drink Dispenser $0 $0
Architect $7,000 $21,000
Grand Opening Marketing $25,000 $60,000
Insurance $3,500 $12,000
Misc. Opening Costs $10,000 $25,000
Security Deposits $4,500 $30,000
Travel and Living Expenses while Training $5,000 $10,000
Opening Inventory $4,000 $10,000
Additional Funds - 3 Months $25,000 $50,000
Total Estimated Initial Investment(excluding real estate) $368,930 $915,700
Other Fees
Type of Fee Amount
Royalty Fee 5% of Net Sales.
Advertising Contribution 2% of Net sales.
Advertising Cooperative Contribution An amount set by the franchisee’s Advertising Cooperative.
Local Marketing Obligation Each calendar quarter, the franchisee must spend not less than 2% of Net Sales on local market advertising .
Promotions Costs to purchase, lease and install all materials necessary for promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items and gift cards. The franchisor may charge the franchisee costs plus a reasonable administrative fee.
EFT NSF Fee The franchisors out-of-pocket costs and an administrative fee.
Interest 1.5% per month or maximum legal interest rate.
Subsequent Trainee Initial Training Fee Currently, up to $500 per trainee.
On-Site Training and Assistance A reasonable fee, currently, $50 per hour per trainer plus trainers’ travel and living expenses.
Late Fee for reports, financial statements or tax returns $100 per day.
Taxes The franchisor's cost.
Additional Support/Consulting Fee A reasonable fee, currently, $500 per day, plus travel and living expenses.
Relocation Extension Fee Another initial franchise fee of $1,500 per year of extension on term.
Transfer Fee 50% of the then-current initial franchise Fee; if it is a transfer to a related party, 10% of the then-current initial franchise fee.
Renewal Fee 10% of the then-current Initial Franchise Fee.
Liquidated Damages The average monthly amount of Royalty that owed to the franchisor during the past 36 months times the lesser of the remainder of Term or 36 months. If less than 36 months have passed since opening and termination, the amount will be the average monthly Royalty during the time between opening and termination, times the lesser of remainder of Term or 36 months.
Appraiser's Fee 50% of appraiser's fee.
Indemnification of Franchisor The franchisor's cost.
Attorneys' Fees The franchisor's cost.
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.
Audit Cost of audit.
Rent Will vary based on location and other factors; the estimated rent will range $4,500 - $20,000 per month.
Credit Card Fees Equipment costs and set up fees estimated to be up to $700 per terminal. Transaction fees estimated to be from 2.5% to 5.0% of transaction amounts. Other fees may apply depending on the vendor used for credit card processing.
Gift Card and Loyalty Card Fees Amount of fees.
Electronic Learning Management System Amount of fees. We estimate the cost will be $500 to $750 annually.
Conference/Program Fee A reasonable fee, which will vary by program.
Training Cancellation Fee The franchisor’s out-of-pocket costs.
Supplier/Product Evaluation Fee The greater of $2,500 or the actual cost of the supplier/product evaluation process.
Lease Renewal Fee The then-current fee. Currently, $2,000
Transfer Fee 50% of the then-current Initial Franchise Fee if it is a Control Transfer; if it is a transfer to a related party or that is a non-Control Transfer, 10% of the then-current Initial Franchise Fee.
Computer Systems Fee A reasonable fee, which will vary on the services provided.
Polling and POS System Service and Support Recurring Fee Estimated to not exceed $200 per month.
Purchasing Program Fee Reasonable membership fees assessed by the Purchasing Program.
Supply Chain Fee Currently, $0.25 per case purchased through certain Appointed Distributors.
Development Deadline Extension Fee $2,500 per missed deadline.
Failure to Comply with Standards or Law Fee Up to a $5,000 fee plus the franchisor’s reasonable expenses connected with any inspection, examination or analysis of product.
Repeated Inspection Fee Cost of inspection.
Attorney's Fees The franchisor's cost.
De-Identification Fee The franchisor’s actual costs, plus interest and an administrative fee equal to 15% of the franchisor’s actual costs.
Lease Documentation Fee $500 for each failure.
Restrictive Covenant Violation Fee $2,500 for an hourly employee, $5,000 for an assistant manager, $7,500 for a manager or general manager, and $10,000 for a corporate employee.
Appraiser's Fee T50% of appraiser's fee.

The above information has been taken from the FDD of Moe's Southwest Grill. Year of FDD: 2016

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