Moe's Southwest Grill
Date of Incorporation: 2000
Franchising Since: 2001
Headquarters: Georgia
Country: U.S.
Description: Moe's Southwest Grill is offering franchises to operate a fast casual restaurant offering fresh-mex and southwestern food products under the service mark "MOE'S SOUTHWEST GRILL".
Franchise Offer: Moe&'s Southwest Grill offers franchises to qualified individuals and entities for restaurants which offer fresh-mex and southwestern food dishes, other food products and beverages, and related services. The franchisee will operate a Moe’s Southwest Grill as an independent business utilizing the trademarks, business concepts, support, guidance and materials developed by the franchisor.
Financial Assistance: Neither Moe’s Southwest Grill nor any affiliate offers, directly or indirectly, any financing to the franchisee. The franchisor does not guarantee any of the franchisee’s notes, leases or obligations.
Training and Assistance: The franchisee and full-time manager must attend the initial training program. The Initial Training Program will last about 3 weeks and will be comprised of FOCUS Brands' University classroom training and in-Restaurant training in one of the certified training locations in Atlanta, Georgia, or at another certified training facility. Moe’s Southwest Grill will loan the franchisee one copy of the operations manual which contains mandatory and suggested specifications, standards, and procedures.
Territory: The development agreement will specify an area of responsibility within which the franchisee will focus development efforts. Under the development agreement, the franchisee is not granted a territory, exclusive or otherwise, within which to develop the restaurant(s). The franchisee may establish a restaurant at any location within the area of responsibility provided that Moe's Southwest Grill consents to the location. The franchisee will have no exclusive territorial rights, protected territory or other rights to exclude, control or impose conditions on the location or development of other or future franchises on Moe's Southwest Grill's activities.
Term of Agreement and Renewal: The term of the franchise agreement is 10 years. If the franchisee meets the requirements, he or she can renew for one additional consecutive 10-year term; after that he or she will have no right to renew the franchise agreement.
Obligations and Restrictions: The franchisee must maintain direct responsibility over the restaurant; however, Moe's Southwest Grill does not require that the franchisee personally supervise the day-to-day operations of the restaurant during operation hours. A manager who has successfully completed the initial training must at all times be at the franchisee’s restaurant. The manager may not assist in any business which competes with the franchisee’s restaurant. The manager must invest his/her full time and attention and devote his/her best efforts to the on-premises management of the restaurant.
The franchisee must offer and sell only those products and services approved by Moe's Southwest Grill. Further, the franchisee must offer all goods and services that Moe’s Southwest Grill designates as required for all franchisees. The franchisee may not have or use, or permit the presence or use of, video game machines or vending machines or any similar device or machine at the restaurant unless Moe’s Southwest Grill consents in writing.
Total Number of Units: Over 400 units worldwide
Investment Tables:
Initial Investment:
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,000 | $30,000 |
| Rent | $3,000 | $12,000 |
| Security Deposit | $3,000 | $15,000 |
| Real Estate and Improvements | $214,000 | $416,800 |
| Travel and Living Expenses while Training | $5,000 | $10,000 |
| Furnishings, Fixtures, Equipment and Decorating | $105,200 | $151,200 |
| Signage | $7,200 | $20,000 |
| Opening Inventory | $4,000 | $10,000 |
| Computer hardware/ Software | $7,500 | $18,000 |
| Grand Opening | $15,000 | $18,000 |
| Professional Fees | $10,000 | $20,000 |
| Insurance | $10,000 | $24,000 |
| Miscellaneous Opening Costs | $10,000 | $25,000 |
| Additional Funds- 3 months | $25,000 | $50,000 |
| Total Estimated Initial Investment | $448,900 | $820,000 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Gross Sales |
| Advertising Contribution | Max of 2% of gross sales |
| Advertising Cooperative Contribution | Not more than 2% of gross sales |
|
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. |
| EFT NSF Fee | The franchisors out-of-pocket costs and an administrative fee |
| Replacement Manager Initial Training Fee | Up to $500 per trainee |
| On-Site Training and Assistance | $50 per hour plus trainers' expenses |
|
Consulting Fee |
$500 per day |
|
Adulteration, Dilution or Failure of Sanitation Inspection Fee |
The franchisor's expenses, including attorneys' fees, and inspection fees of up to $5,000 per visit |
| Interest | Lesser of maximum legal interest rate, or 12% per year |
| Taxes | The franchisor's cost |
| Advances | The franchisor's cost |
|
Relocation Extension Fee |
$1,500 per year of extension on Term |
| Transfer Fee | $15,000 for third party transfer $2,500 for Related Party transfer |
| Renewal Fee | The amount of the then-current initial franchise fee |
| Liquidated Damages | The average monthly amount of Royalty that you owed us during the past 36 months times the lesser of: remainder of Term or 36 months. |
| Appraiser's Fee | 50% of appraiser's fee |
| Indemnification of us | The franchisor's cost |
| Attorneys' Fees | The franchisor's cost |
| Supplier/Product Evaluation Fee | Reasonable cost of testing and inspection (expected to be between $1,000 to $2,500) |
| Reinstatement Fee | $2,500 |
| Audit | Cost of audit |
|
Rent |
Will vary based on location and other factors; we estimate rent will range $5,000 - $20,000 per month. |
| Communication Access | Reasonable fee |
| Our assistance in updating; relocation or reconstruction of your Restaurant | The franchisors fees are currently about $30-40 per hour or $350 - $400 per day, but a higher rate may apply depending on the personnel and the circumstances. If any travel is required, the franchisor estimates travel to be between $100 to $1,000 per trip and living expenses to be $100 - $200 per day. |
| Updating and maintaining computer systems; Systems Fee | The franchisor estimates the cost of computer hardware and software maintenance to be $4,000 to $5,000 per year. The amount for upgrades varies based on the extent of the upgrade or services provided. |
| 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. The franchisor estimates that for normal usage these fees will not exceed $250 to $700 annually. |
| Technology Training | Varies |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Moe's Southwest Grill.
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