The Moe's Southwest Grill franchise charges a 5.0% royalty fee and operates 596 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Moe's Southwest Grill.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Other | $0 | $0 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Royalty Fee | 5.0% | PCT | Net Sales | weekly |
| Advertising Contribution | 3.0% | PCT | Net Sales | weekly |
| Advertising Cooperative Contribution | N/A | VARIABLE | Amount set by Advertising Cooperative | weekly |
| Local Marketing Obligation | 1.0% | PCT | Net Sales on local market advertising | quarterly |
| Insufficient Funds Fee | N/A | VARIABLE | Up to 110% of franchisor's actual costs and expenses | as_incurred |
| Interest | 1.5% | PCT | Per month on past due amounts | monthly |
| Late Reporting Fee | $50 | FIXED | Per week | weekly |
| Subsequent Trainee Management Training Fee | $250 | FIXED | Per trainee per day | as_incurred |
| On-Site Training and Assistance Fee | $500 | FIXED | Per trainer per day, plus travel and living expenses | as_incurred |
| Additional Support/Consulting Fee | $500 | FIXED | Per representative per day, plus travel and living expenses | as_incurred |
| Conference/Program Fee | N/A | VARIABLE | Per attendee, varies by program | as_incurred |
| Learning Management System License Fee | $210 | FIXED | Per year | annually |
| Sublease Administration Fee | $200 | FIXED | Per month | monthly |
| Lease Renewal/Extension Review Fee | N/A | VARIABLE | Per lease review | as_incurred |
| Lease Documentation Late Fee | $500 | FIXED | Per month (or partial month) until delivered | monthly |
| Relocation Fee | 10.0% | PCT | 10% of then-current Initial Franchise Fee | one_time |
| Relocation Extension Fee | $1,500 | FIXED | Per year that term is extended | one_time |
| Refresh/Remodel Site Survey and Design Fee | N/A | VARIABLE | Per site survey/design | as_incurred |
| Transfer Fee | 50.0% | PCT | 50% of then-current Initial Franchise Fee for Control Transfer; 10% for non-Control Transfer or related party | one_time |
| Renewal Fee | 20.0% | PCT | 20% of then-current Initial Franchise Fee | one_time |
| Computer Systems Fee | N/A | VARIABLE | Varies based on services provided | as_incurred |
| POS System License and Lease Fees | N/A | VARIABLE | Per month | monthly |
| POS System Support Fee | N/A | VARIABLE | Per month | monthly |
| POS System Administration Fee | N/A | VARIABLE | Per transfer or new opening | one_time |
| Non-GoTo Foods Portfolio POS Menu Setup | $500 | FIXED | Per day | as_incurred |
| Back Office and Polling Software Fee | N/A | VARIABLE | Per month | monthly |
| Credit Card Fees | N/A | VARIABLE | Per transaction | as_incurred |
| Gift Card and Loyalty Program Fees | N/A | VARIABLE | Administrative fees and transaction fees | as_incurred |
| Loyalty App Fee | $62 | FIXED | Per month | monthly |
| Online Ordering Fee | $111 | FIXED | Per month plus 0.04% per transaction | monthly |
| Ordering Support Fee | 3.0% | PCT | Pre-tax transaction amount for transactions through online ordering system | weekly |
| Technology Fee | N/A | VARIABLE | May be based on percentage of Net Sales, fixed fees, and/or usage fees | as_incurred |
| Supply Chain Fee | N/A | VARIABLE | Per case purchased through certain Appointed Distributors | as_incurred |
| Guest Relations Fee | $30 | FIXED | Per guest complaint or contact request not timely responded to or excessive complaint | as_incurred |
| Non-compliance Fee | N/A | VARIABLE | Per violation | as_incurred |
| Failure to Comply with Standards or Law Fee | $5,000 | FIXED | Per violation, plus inspection expenses | as_incurred |
| Development Deadline Extension Fee | $2,500 | FIXED | Per missed deadline | as_incurred |
| Repeated Inspection Fee | $500 | FIXED | Per inspection plus third-party costs | as_incurred |
| Audit | N/A | VARIABLE | Cost of audit | as_incurred |
| Liquidated Damages | N/A | VARIABLE | Average monthly Royalty Fee times lesser of remainder of term or 36 months | one_time |
| Reinstatement Fee | 10.0% | PCT | 10% of then-current Initial Franchise Fee plus Royalty Fees during termination period | one_time |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Average Net Sales | $1,821,614 | USD | Top Quartile | FY2024 |
| Median Net Sales | $1,754,949 | USD | Top Quartile | FY2024 |
| Lowest Net Sales | $1,464,882 | USD | Top Quartile | FY2024 |
| Highest Net Sales | $3,097,451 | USD | Top Quartile | FY2024 |
| Average Net Sales | $1,312,376 | USD | 2nd Quartile | FY2024 |
| Median Net Sales | $1,299,681 | USD | 2nd Quartile | FY2024 |
| Lowest Net Sales | $1,166,787 | USD | 2nd Quartile | FY2024 |
| Highest Net Sales | $1,459,940 | USD | 2nd Quartile | FY2024 |
| Average Net Sales | $1,049,509 | USD | 3rd Quartile | FY2024 |
| Median Net Sales | $1,059,238 | USD | 3rd Quartile | FY2024 |
| Lowest Net Sales | $907,995 | USD | 3rd Quartile | FY2024 |
| Highest Net Sales | $1,164,124 | USD | 3rd Quartile | FY2024 |
| Average Net Sales | $753,347 | USD | Bottom Quartile | FY2024 |
| Median Net Sales | $782,366 | USD | Bottom Quartile | FY2024 |
| Lowest Net Sales | $371,964 | USD | Bottom Quartile | FY2024 |
| Highest Net Sales | $906,553 | USD | Bottom Quartile | FY2024 |
| Average Net Sales | $1,235,422 | USD | All Units | FY2024 |
| Median Net Sales | $1,166,787 | USD | All Units | FY2024 |
| Lowest Net Sales | $371,964 | USD | All Units | FY2024 |
| Highest Net Sales | $3,097,451 | USD | All Units | FY2024 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $3,097,451 | 100% |
| COGS | $-929,235 | 30% |
| Labor | $-867,286 | 28% |
| Occupancy | $-309,745 | 10% |
| Marketing | $-123,898 | 4% |
| Other Costs | $-247,796 | 8% |
| Royalty Fee (franchisor) | $-154,873 | 5.0% |
| Ad Fund Fee (franchisor) | $-30,975 | 1.0% |
| Owner's Profit | $433,643 | 14.0% |
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 658 | +15 | -37 | 13 | 636 | 5.6% | -22 |
| 2023 | 636 | +12 | -37 | 46 | 606 | 5.8% | -30 |
| 2024 | 606 | +15 | -30 | 60 | 591 | 5.0% | -15 |
How Moe's Southwest Grill compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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