About Moe's Southwest Grill Franchise
Moe's Southwest Grill is a well established fast casual restaurant franchise within the Focus Brands portfolio, specializing in made to order Southwestern and Tex Mex cuisine.
The brand has been franchising since 2017 in its current corporate structure and operates hundreds of locations nationwide.
Moe's is celebrated for its generous portions, customizable menu, and energetic restaurant atmosphere.
Moe's Southwest Grill Franchise Cost & Fees
Minimum Investment
$566K
Average Investment
$1.1M
Maximum Investment
$1.6M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $30,500 | One-time payment upon signing |
| Royalty Fee | 5% of Net Sales of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Currently, 2% of Net Sales, but it may be increased to up to 4% of Net Sales | National brand fund |
| Total Investment Range | $566,300 – $1,585,610 | Includes build-out, inventory, working capital |
The investment range of $566K–$1.6M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Net Sales) and marketing fee (Currently, 2% of Net Sales, but it may be increased to up to 4% of Net Sales) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $30,500 | $30,500 |
| Construction and Build Out Costs | $275,000 | $935,000 |
| Permitting | $1,700 | $2,500 |
| Equipment Package | $79,000 | $127,000 |
| Millwork | $35,000 | $44,000 |
| Furniture | $24,500 | $35,000 |
| Menu Board, Graphics and Interior Signage | $2,600 | $12,000 |
| Exterior Signage | $12,000 | $73,200 |
| Computer System | $12,000 | $47,000 |
| Smallwares | $12,500 | $19,000 |
| TV/Music | $1,000 | $3,600 |
| Architect/Engineer | $11,500 | $32,000 |
| Rent | $4,500 | $20,000 |
| Grand Opening Marketing | $5,000 | $25,000 |
| Legal and Accounting Fees | $3,500 | $50,000 |
| Insurance | $7,000 | $9,000 |
| Misc. Opening Costs/Office Supplies | $2,500 | $5,000 |
| Security Deposits | $1,500 | $8,000 |
| Training Fees | $0 | $5,810 |
| Travel and Living Expenses during Training | $10,000 | $40,000 |
| Opening Inventory | $10,000 | $12,000 |
| Additional Funds - 3 Months | $25,000 | $50,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| 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 not a Control Transfer, 10% of the then-current Initial Franchise Fee |
| Renewal Fee | 20% of the then-current Initial Franchise Fee |
| Technology Fee | Currently, estimated to be between $100 and $250 per month (POS System Support Fee) |
| Audit Fee | Cost of audit (estimated $1,000 to $4,000) |
| Advertising Cooperative Contribution | An amount set by your Advertising Cooperative |
| Local Marketing Obligation | Currently, not less than 2% of Net Sales each calendar quarter |
| Promotions | Costs to purchase, lease and install all materials necessary for promotional campaigns, plus franchisor's costs and administrative fee |
| Insufficient Funds Fee | Franchisor's out-of-pocket costs and an administrative fee |
| Interest | The lesser of 1.5% per month or the maximum legal interest rate |
| Late Reporting Fee | Currently, $50 per day |
| Taxes and Other Payments | Franchisor's cost |
| Subsequent Trainee Management Training Fee | Currently, between $360 and $1,820 per trainee |
| On-Site Training and Assistance Fee | Currently, $2,000 per week per trainer, plus their direct airfare expenses |
| Additional Support/Consulting Fee | Currently, $500 per day, plus travel and living expenses |
| Conference/Program Fee | A reasonable fee, which will vary by program (expected $0 to $2,500) |
| Training Cancellation Fee | Franchisor's out-of-pocket costs |
| Learning Management System License Fee | Currently not charged; estimated to be $185 to $225 per year starting Jan 2023 |
| Plan Review Fee | $1,000 per set of drawings |
| Lease Renewal/Extension Review Fee | Currently, $2,000 |
| Lease Documentation Late Fee | $500 per month (or partial month) |
| 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 | Currently, approximately $1,200 to $6,000 |
| Computer Systems Fee | A reasonable fee, which will vary based on the services provided |
| Non-Focus Brands Portfolio POS Menu Setup | A reasonable fee, currently estimated to be $500 per day |
| Mobile Device Management Software License Fee | Currently, estimated to be between $19 and $40 per month |
| Back Office and Polling Software Fee | Currently, estimated to be between $100 and $200 per month |
| Credit Card Fees | Transaction fees estimated to be from 2.5% to 5% of transaction amounts. Other fees may apply. |
| Information Security and Compliance Fees | Estimated to be between $75 and $150 per month |
| Gift Card and Loyalty Program Fees | Amount of administrative fees |
| Loyalty App Fee | Currently, $55 per month |
| Online Ordering Fee | Currently, $69 per month |
| Ordering Support Fee | Currently, $0.35 to $0.50 per transaction |
| Purchasing Program Fee | Reasonable membership fees assessed by the Purchasing Program |
| Supply Chain Fee | Currently, $0.25 - $0.35 per case purchased through certain Appointed Distributors |
| Master Insurance Policy Fee | Currently not charged; no estimate at this time |
| Insurance | Amount of unpaid premiums and franchisor's costs |
| Guest Relations Fee | Currently, $20 to $40 for each guest complaint or other contact request that you do not timely respond to or for each excessive guest complaint |
| Non-compliance Fee | Currently, $25 to $500 for a single default |
| Failure to Comply with Standards or Law Fee | Up to a $5,000 fee plus franchisor's reasonable expenses |
| Development Deadline Extension Fee | $2,500 per missed deadline |
| Repeated Inspection Fee | Cost of inspection |
| Reimbursement of Services After Default | All costs and expenses that franchisor reasonably incurs |
| Liquidated Damages | The average monthly amount of Royalty that you owed us 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 us | Franchisor's cost |
| Attorneys’ Fees | 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 | Franchisor's actual costs, plus interest and an administrative fee equal to 15% of franchisor's actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately three to four weeks long |
| Classroom Training | 50 |
| On-the-Job Training | 150 |
| Training Location | Classroom: Online or our corporate headquarters in Atlanta, Georgia. On-the-Job: Other locations authorized by us from time to time. |
| Additional Training | We may, from time to time, conduct conferences, conventions, programs, webinars, teleconferences, or additional or refresher training sessions on any matters related to the System (“Additional Programs”). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Determined on a case-by-case basis, potentially a mile radius. |
| Description | You may receive a territory with limited protected rights (an “Area of Protection”). 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 and Delivery Kitchens. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | One 20 year renewal term |
| Renewal Fee | 20% of the then-current Initial Franchise Fee |
| Renewal Conditions | To renew, you must: timely request renewal, complete a renewal application, be in substantial compliance with the Franchise Agreement, remodel/refurbish/renovate the Restaurant, secure the right to operate at the Accepted Location or relocate if necessary, sign the then-current Renewal Franchise Agreement, pay the Renewal Fee, and you and your guarantors/owners must sign a general release. |
| Transfer Fee | 50% of the then-current Initial Franchise Fee (Control Transfer); 10% of the then-current Initial Franchise Fee (Non-Control Transfer or Related Party Transfer) |
| Transfer Conditions | Conditions for franchisor approval of transfer include: timely written notice, payment of all sums owed, no material default, transferee and proposed manager must complete training, transferee meets new franchisee requirements, transferee agrees to upgrade/remodel, transferee signs then-current Franchise Agreement and assignment/personal guarantee, transferor/owners/guarantors sign general release, franchisor receives all transfer documents, and franchisor determines price will not impact operation. |
| Termination for Cause | We may terminate without opportunity to cure for: violation of confidentiality/restrictive covenants, copying manuals, felony conviction or fraudulent conduct, abandonment of business, loss of possession of Accepted Location, repeated defaults, insolvency/bankruptcy, violation of anti-terrorism laws, failure to open by Opening Deadline, default under other agreements with us/affiliates, threat to public health/safety, or misuse of marks. We may terminate with cure period for: failure to grant access for inspection/audit (24 hours), dilution/adulteration of products (24 hours), failure to comply with laws (24 hours), selling unapproved products (5 days), failure to pay debts (10 days), failure to obtain personal covenants (10 days), default under mortgage/lease (10 days), failure to obtain insurance (10 days), failure to provide reports (10 days), failure to meet Site Approval/Construction Start Deadlines (30 days), failure to maintain financial records (30 days), or any other breach (30 days). |
| Non-Compete Period | During the Term and for 12 months after expiration or termination |
| Non-Compete Details | During the term, you and your Covenanting Personnel (owners, directors, officers) cannot have any interest in a Competitive Business (derives >20% annual revenue from competing products, or similar business concept, or grants franchises for such businesses), divert business, or use vendor relationships for other purposes. Post-term, for 12 months, within 3 miles of the Accepted Location or any Business, you/Covenanting Personnel cannot have any interest in a Competitive Business or divert business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | You (if an individual) and your Owners (if an Entity) are not required to participate in the actual operation of the Restaurant but may serve as the Primary Contact and/or a Manager. However, we do not recommend investment for absentee management. You must appoint a Primary Contact responsible for the Restaurant's operation. During the first 90 days, two Managers are required; thereafter, at least one Manager. Managers must have day-to-day management responsibility, on-premises supervision, and personally participate in direct operation. |
| Required Suppliers | You must purchase all of your requirements of Proprietary Ingredients, Proprietary Products, and proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging (collectively, the “Proprietary Goods”) from us, our affiliates, or our designated Approved Suppliers. For all other Goods, we may require you to purchase such Goods from any Approved Suppliers or from particular Approved Suppliers, or we may permit you to purchase such Goods from any Supplier capable of providing Goods that meet our minimum Standards. |
| Supply Restrictions | We have the right to require that Approved Products, other products, Proprietary Ingredients, supplies (including chemicals), furniture, fixtures, equipment, and services (collectively, “Goods”) that you purchase for resale or purchase or lease for use in your Restaurant: (i) meet specifications that we establish from time to time; (ii) be a specific brand, kind, or model; (iii) be purchased or leased only from suppliers, service providers, manufacturers, distributors, and/or consolidators (collectively, “Approved Suppliers”); (iv) be purchased or leased only from a single source that we designate; and/or (v) be purchased as part of a purchasing program, arrangement, or contract that we negotiate or specify. We may add or change Approved Suppliers at any time. |
| Franchisor Revenue from Suppliers | We and our affiliates may receive payments based on your purchases and leases, including from charging you for Goods we or our affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by Suppliers or third parties. During Fiscal Year 2021, MFL received $2,348,684 (Ad Fund) and $718,100 (POS System support fees). Focus Brands Systems received $1,925,002 from Approved Suppliers. FBRI collected $41,891 from the gift card program. FSC collected approximately $6,159,228 in distribution case fees and logistics savings. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer financing for trade fixtures, opening inventory, or any other purpose. We may refer you to leasing or financing companies not affiliated with us. We and our affiliates receive no fees or other financial benefits from any lender for your financing. Currently, we will not guarantee your note, lease, or obligation, for any lender, or any other person or entity. We participate in the SBA’s Franchise Directory. |
Moe's Southwest Grill Franchise Earnings — Item 19
Average Revenue
$1.1M
Median Revenue
$1.0M
Revenue Range
$346K – $2.7M
Sample Size
482 units
Past financial performance does not guarantee future results. Individual results will vary.
Moe's Southwest Grill Litigation & Risk Flags
Clean Litigation RecordMoe's Southwest Grill has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Moe's Southwest Grill System Growth
Total Units
659
Franchised
658
Company-Owned
1
Moe's Southwest Grill currently operates 658 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 33 | 28 | 719 |
| 2020 | 14 | 54 | 679 |
| 2021 | 13 | 34 | 658 |
Transfers: 25 | Closures: 34
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$221.3M
Net Income
$174.6M
Total Assets
$331.1M
Audited by Grant Thornton LLP for year ending December 26, 2021.
Moe's Southwest Grill Franchise — FAQ
The total investment to open a Moe's Southwest Grill franchise ranges from $566,300 to $1,585,610, per their Franchise Disclosure Document. This includes the initial franchise fee of $30,500. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Moe's Southwest Grill charges a royalty fee of 5% of Net Sales of gross sales, plus a Currently, 2% of Net Sales, but it may be increased to up to 4% of Net Sales contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Moe's Southwest Grill Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Moe's Southwest Grill to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Moe's Southwest Grill franchise owners report average revenue of $1.1M and median revenue of $1.0M. This is based on a sample of 482 units. Past performance does not guarantee future results.
Moe's Southwest Grill has been franchising since 2017. The FDD shows an investment range of $566,300-$1,585,610, a 5% of Net Sales royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $30,500 and the total investment ranges from $566,300 to $1,585,610 depending on location size and market. A minimum of $30,500 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Moe's Southwest Grill and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Moe's Southwest Grill or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com