Moe's Southwest Grill Franchise Costs, Fees & FDD

Year Business Began: 2000

Franchising Since: 2001

Headquarters: Atlanta, Georgia

Estimated Number of Units: 605

Franchise Description: The franchisor is Moe's Franchisor SPV LLC. The franchisor is a direct, wholly owned subsidiary of GoTo Foods LLC (formerly known as Focus Brands LLC). Moe’s Southwest Grill restaurants are fast casual restaurants featuring southwestern food products and other food and beverage products, which may include alcoholic beverages. 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.

Training Overview: Prior to the opening of the restaurant, the required trainees must attend and successfully complete to the franchisor’s satisfaction the management training program. The required trainees must successfully complete the management training program at least one week prior to the scheduled opening date of the restaurant. All or certain portions of the Management Training Program may, in the franchisor’s discretion, be conducted online or in person at (i) the franchisor’s corporate headquarters in Atlanta, Georgia, (ii) a Restaurant that has been designated and certified by the franchisor as an authorized training facility, and/or (iii) other locations authorized by the franchisor. Currently, the management training program consists of approximately 50 classroom hours and 150 on-the-job hours. For the franchisee’s first three restaurants (including restaurants owned by affiliates), the initial franchise fee includes the cost of one or more of the franchisor’s representatives to provide on-site training and assistance (approximately seven days after franchisees obtain the certificate of occupancy and health permit) to facilitate the opening of such restaurants. The franchisor may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or training sessions on any matters related to the system.

Territory Granted: The restaurant may only be operated at the accepted location. Franchisees may receive a territory with limited protected rights (area of protection). The size and scope of the area of protection will be in the Franchise Agreement and will be determined on a case-by-case basis. The factors the franchisor considers in determining the size of an area of protection 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, the franchisor’s future development plans and other market conditions. However, there is no minimum area of protection for a restaurant, if the franchisor grants franchisees one. If the franchisee is not granted an area of protection, the franchisee will not receive a protected territory. During the term of the Franchise Agreement, we will not establish or operate, nor license any other person to establish or operate, a restaurant operating under the proprietary marks and the system at any location within the area of protection, except in captive audience locations, delivery kitchens, and as otherwise provided in the Franchise Agreement.

Obligations and Restrictions: Franchisees are required to devote their best efforts to the proper and effective operation of the restaurant. Franchisees must appoint a primary contact who will be responsible for, and have decision-making authority regarding, the restaurant and its operation. Franchisees must have two certified managers who are dedicated to the restaurant, one of whom may also be the primary contact. Franchisees may offer in the restaurant to customers only the approved products that the franchisor has approved in writing. Franchisees must produce and sell all approved products the franchisor specifies, including all menu items, trademarked product lines, and other products and services that the franchisor requires franchisees to sell, as stated in the manuals or otherwise, which are all part of the system.

Term of Agreement and Renewal: The length of the initial franchise term is 20 years. One 20-year renewal term is available if franchisees comply with the franchisor’s renewal requirements.

Financial Assistance: The franchisor does not offer financing for trade fixtures, opening inventory, or any other purpose. The franchisor may refer franchisees to leasing or financing companies not affiliated with it. The franchisor and its affiliates receive no fees or other financial benefits from any lender for franchisees’ financing. Currently, the franchisor will not guarantee a franchisee’s note, lease, or obligation, for any lender, or any other person or entity. The franchisor may engage an advisor who will provide consulting services to franchisees to assist them with securing financing and it pays the advisor for this assistance to franchisees.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$30,500	$30,500
Construction and Build Out Costs	$245,000	$1,075,400
Permitting	$2,300	$17,500
Equipment Package	$168,000	$256,400
Millwork	$21,000	$61,800
Furniture	$15,000	$30,100
Menu Board, Graphics, Interior Signage	$7,500	$10,100
Exterior Signage	$13,900	$22,300
Computer System	$13,000	$50,100
Smallwares	$9,800	$20,000
TV, Music	$2,400	$5,000
Architect/Engineer	$9,800	$20,000
Rent	$4,500	$20,000
Grand Opening Marketing	$25,000	$35,000
Legal and Accounting Fees	$3,500	$50,000
Insurance	$1,425	$7,550
Misc. Opening Costs/Office Supplies	$2,500	$5,000
Security Deposits	$1,500	$8,000
Management Training Program Fee	$0	$7,500
Travel and Living Expenses while Training	$8,100	$11,700
On-Site Training Fee	$0	$18,300
Opening Inventory	$15,000	$35,000
Additional Funds - 3 Months	$25,000	$53,000
ESTIMATED TOTAL	$624,725	$1,850,250

 
Other Fees

Type of Fee	Amount
Royalty Fee	5% of net sales.
Advertising Contribution	Currently, 3% of net sales, but it may be increased to up to 4% of net sales.
Advertising Cooperative Contribution	An amount set by the franchisee’s advertising cooperative.
Local Marketing Obligation	Currently, each calendar quarter, franchisees must spend not less than 1% of net sales on local market advertising.
Promotions and Advertising Materials	Up to 110% of the franchisor’s or its affiliates’ actual costs and expenses related to the goods franchisees purchase from the franchisor or the affiliate.
Insufficient Funds Fee	Up to 110% of the franchisor’s or affiliates’ out-of-pocket costs and an administrative fee.
Interest	The lesser of 1.5% per month or maximum legal interest rate.
Late Reporting Fee	Currently, $50 per week.
Taxes and Other Payments	The franchisor's costs and expenses.
Subsequent Trainee Management Training Fee	Currently, $250 per trainee per day.
On-Site Training and Assistance	A reasonable fee. Currently, $500 per trainer per day, plus their travel and living expenses.
Additional Support/Consulting Fee	A reasonable fee. Currently, $500 per day, plus travel and living expenses.
Conference/Program Fee	A reasonable fee, which will vary by program.
Training Cancellation Fee	The fees for the cancelled program and the franchisor’s out-of-pocket costs.
Learning Management System License Fee	The then-current fees. Currently, $210 per year.
Sublease Administration Fee	The then-current fees. Currently, $200 per year.
Lease Renewal/Extension Review Fee	The then-current fee.
Lease Documentation Late Fee	$500 per month (or partial month) until delivered.
Relocation Fee	10% of the then-current initial franchise fee.
Relocation Extension Fee	$1,500 per year that the term is extended.
Refresh/Remodel Site Survey and Design Fee	The then-current fee. Currently, $1,200 to $6,000 depending on the scope of the required changes.
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.
Renewal Fee	20% of the then-current initial franchise fee.
Computer Systems Fee	A reasonable fee, which will vary on the services provided.
POS System License and Lease Fees	Currently, $140 to $324 per month if franchisees purchase the POS System under the CapEx Program and $588 to $802 per month if they lease the POS System under the HaaS Program.
POS System Support Fee	Currently, estimated to be between $125 and $250 per month.
POS System Administration Fee	The then-current fee.
Non-GoTo Foods Portfolio POS Menu Setup	A reasonable fee, currently estimated to be $500 per day.
Back Office and Polling Software Fee	Currently, estimated to be between $100 and $200 per month.
Credit Card Fees	Transaction fees are 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.
Information Security and Compliance Fees	Currently, not charged by the franchisor or its affiliates.
Gift Card and Loyalty Program Fees	Amount of administrative fees.
Loyalty App Fee	Currently, $62 per month.
Online Ordering Fee	Currently, $111 per month, plus a per transaction fee (estimated to be less than 0.04% per transaction) and additional charges based on services subscribed to.
Ordering Support Fee	The then-current fee, which will vary based on the services provided.
Technology Fee	The then-current fee.
Purchasing Program Fee	Reasonable membership fees assessed by the purchasing program.
Supply Chain Fee	Currently, $0.49 - $0.65 per case purchased through certain appointed distributors.
Master Insurance Policy Fee	Currently not charged.
Insurance	Amount of unpaid premiums and the franchisor’s costs.
Guest Relations Fee	Currently, $30 for each guest complaint or other contact request that franchisees do not timely respond to or for each excessive guest complaint.
Non-Compliance Fee	Currently, $25 to $500 for a single default, but may vary based on the severity of violations, number of violations, and repetition of violations.
Failure to Comply with Standards or Law Fee	Currently, up to a $5,000 fee plus the franchisor’s reasonable expenses connected with any inspection, examination or analysis of products or the franchisee’s restaurant.
Development Deadline Extension Fee	$2,500 per missed deadline.
Repeated Inspection Fee	$500 non-compliance Fee, plus any costs the franchisor is charged by third-party inspectors or otherwise incurs.
Reimbursement of Services After Default	All costs and expenses that the franchisor reasonably incurs.
Audit	Cost of audit.
Liquidated Damages	The average monthly amount of royalty that the franchisee owed the franchisor during the past 36 months times the lesser of the remainder of term of the Franchise Agreement 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.
De-identification Fee	The franchisor’s actual costs, plus interest and an administrative fee equal to 15% of the franchisor’s actual costs.

The above information has been compiled from the FDD of Moe's Southwest Grill. Year of FDD: 2025.
Franchise Direct's Disclaimer