About Moe's Southwest Grill Exemptions Franchise
Moe's Southwest Grill is a fast casual restaurant franchise specializing in southwestern food products and other food and beverage products, which may include alcoholic beverages.
Franchisees operate a Moe's Southwest Grill restaurant under the brand's proprietary marks, serving customizable burritos, tacos, quesadillas, nachos, and other Tex-Mex-inspired menu items to customers of all age groups.
The restaurants are designed for on-premises consumption, delivery, and carry-out, targeting a broad consumer base seeking fresh, flavorful southwestern cuisine in a fun and welcoming environment.
Moe's Southwest Grill Exemptions Franchise Cost & Fees
| 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 | 2% of Net Sales (may be increased to up to 4%) | 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 (2% of Net Sales (may be increased to up to 4%)) 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 then-current Initial Franchise Fee for Control Transfer; 10% of then-current Initial Franchise Fee for non-Control Transfer |
| Renewal Fee | 20% of then-current Initial Franchise Fee |
| Technology Fee | POS System Support Fee: $100-$250/month; Back Office and Polling Software Fee: $100-$200/month; Mobile Device Management Software License Fee: $19-$40/month; Information Security and Compliance Fees: $75-$150/month; Learning Management System License Fee: $185-$225/year |
| Audit Fee | Cost of audit if Net Sales understated by 2% or more (estimated $1,000-$4,000) |
| Local Marketing Obligation | Not less than 2% of Net Sales per calendar quarter |
| Advertising Cooperative Contribution | Amount set by Advertising Cooperative |
| Interest | Lesser of 1.5% per month or maximum legal interest rate |
| Late Reporting Fee | $50 per day |
| Subsequent Trainee Management Training Fee | $360-$1,820 per trainee |
| On-Site Training and Assistance Fee | $2,000 per week per trainer plus airfare |
| Additional Support/Consulting Fee | $500 per day plus travel and living expenses |
| Conference/Program Fee | $0-$2,500 |
| Refresh/Remodel Site Survey and Design Fee | $1,200-$6,000 |
| Relocation Fee | 10% of then-current Initial Franchise Fee |
| Relocation Extension Fee | $1,500 per year |
| Computer Systems Fee | Varies based on services |
| POS System Support Fee | $100-$250 per month |
| Non-Focus Brands Portfolio POS Menu Setup | $500 per day |
| Loyalty App Fee | $55 per month |
| Online Ordering Fee | $69 per month |
| Ordering Support Fee | $0.35-$0.50 per transaction |
| Supply Chain Fee | $0.25-$0.35 per case purchased |
| Gift Card and Loyalty Program Fees | Administrative fees (7.75% or 12% of gift card value plus $4.50/month) |
| Guest Relations Fee | $20-$40 per complaint |
| Non-compliance Fee | $25-$500 per default |
| Failure to Comply with Standards or Law Fee | Up to $5,000 plus expenses |
| Credit Card Fees | 2.5%-5% of transaction amounts |
| Lease Renewal/Extension Review Fee | $2,000 |
| Lease Documentation Late Fee | $500 per month |
| Development Deadline Extension Fee | $2,500 per missed deadline |
| Plan Review Fee | $1,000 per set of drawings |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 3 to 4 weeks |
| Classroom Training | 50 hours |
| On-the-Job Training | 150 hours |
| Training Location | Online or corporate headquarters in Atlanta, Georgia (classroom); other locations authorized by franchisor (on-the-job) |
| Additional Training | On-site opening training and assistance for approximately 7 days after Certificate of Occupancy; annual re-certification through Learning Management System; conferences, programs, webinars, and training sessions as required; Subsequent Trainee Management Training Fee for new managers after opening |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | Yes |
| Territory Size | Negotiated on a case-by-case basis; no minimum size |
| Description | Franchisees may receive an Area of Protection with limited protected rights. During the franchise term, the franchisor will not establish or operate, nor license any other person to establish or operate, a Restaurant under the Proprietary Marks within the Area of Protection, except in Captive Audience Locations and Delivery Kitchens. The size and scope is determined case-by-case based on market demand, demographics, population, household income, competitor locations, traffic patterns, and other market conditions. The Area of Protection may be reduced or eliminated if the franchisee defaults and fails to cure. Territorial protection is not dependent on sales volume or market penetration. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 20 years |
| Renewal Term | 20 years |
| Renewal Fee | 20% of then-current Initial Franchise Fee |
| Renewal Conditions | Timely request renewal; complete renewal application; substantial compliance with Franchise Agreement; remodel/refurbish/renovate Restaurant; secure right to operate at Accepted Location; sign renewal Franchise Agreement (may have materially different terms); pay Renewal Fee; guarantors and owners sign general release |
| Transfer Fee | 50% of then-current Initial Franchise Fee for Control Transfer; 10% of then-current Initial Franchise Fee for non-Control Transfer |
| Transfer Conditions | 90 days prior written notice; pay all amounts owed; not in default; transferee must meet current qualifications and complete training; transferee must upgrade/remodel Restaurant; transferee signs then-current Franchise Agreement; written assignment and personal guarantee; general release; landlord consent; Transfer Fee paid |
| Termination for Cause | Franchisor may terminate only if franchisee defaults. Curable defaults include: 24 hours for refusal to allow inspection, product adulteration, or failure to comply with laws; 5 days for selling proprietary goods at wholesale/retail; 10 days for failure to pay debts, obtain personal covenants, default under mortgage/lease, failure to obtain insurance, or failure to provide reports; 30 days for failure to maintain financial records or breach of other Franchise Agreement provisions. Non-curable defaults include: violation of confidentiality restrictions, copying manuals, felony conviction, fraud, abandonment for 5+ days, loss of lease, repeated defaults within 12 months, insolvency/bankruptcy, terrorism violations, failure to meet Opening Deadline, uncured default under other agreements, threats to public health/safety, and misuse of Proprietary Marks. |
| Non-Compete Period | 12 months after expiration or termination |
| Non-Compete Details | For 12 months after expiration or termination, no involvement in a competitive business at the Accepted Location, within 3 miles of the Accepted Location, within 3 miles of any Restaurant, and no diverting or attempting to divert any business from any Restaurant. During the franchise term, no involvement in competitive businesses that offer products similar to Approved Products anywhere. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee is required to devote best efforts to the proper and effective operation of the Restaurant but is not required to personally participate in the actual operation. The franchisee must appoint a Primary Contact who holds at least 5% interest in the entity and has decision-making authority. Two full-time Managers must be appointed (one may be the Primary Contact), and all Managers must complete the Management Training Program. During the first 90 days, two Managers must be dedicated to the Restaurant; after 90 days, at least one Manager must be dedicated at all times. The franchisor does not recommend investment for absentee management. |
| Required Suppliers | Franchisees must purchase Proprietary Ingredients, Proprietary Products, proprietary uniforms, signs, menu boards, smallwares, materials, supplies, paper goods, equipment, and packaging from the franchisor, its affiliates, or designated Approved Suppliers. Approximately 85% of total purchases to establish a Restaurant and 90% to operate must be from Approved Suppliers. |
| Supply Restrictions | All Goods must meet franchisor specifications; must use Approved Suppliers for POS System, Computer System components, Learning Management System, P2PE solutions, insurance, and beverage arrangement. Must use designated credit card processing. Must participate in gift card, loyalty, and online ordering programs. |
| Franchisor Revenue from Suppliers | During Fiscal Year 2021: MFL received $2,348,684 from Approved Suppliers deposited in Ad Fund; MFL received $718,100 from franchisees for POS System support fees; Focus Brands Systems received $1,925,002 in payments from Approved Suppliers related to franchisee purchases. FBRI collected $41,891 from gift card program. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Moe's does not offer direct or indirect financing to franchisees for any purpose. They may refer franchisees to leasing or financing companies not affiliated with them. They participate in the SBA's Franchise Directory and may modify the Franchise Agreement to comply with SBA loan program requirements. |
Moe's Southwest Grill Exemptions Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Moe's Southwest Grill Exemptions Litigation & Risk Flags
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 Exemptions System Growth
Moe's Southwest Grill Exemptions 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 | 722 | ||
| 2020 | 681 | ||
| 2021 | 659 |
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Moe's Southwest Grill Exemptions Franchise — FAQ
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