Moe’s Southwest GrillFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Moe’s Southwest Grill franchise requires a total initial investment of $745K – $1.8M, including a $31K franchise fee and an ongoing 5.0% royalty[2]. Per the 2024 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 14.5% charge-off rate across 79 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2024 FDD issuance
Overview
- Investment
- $745K – $1.8M
- 92nd pct Service Resta…
- Avg gross sales
- $1.2M
- 40th pct Service Resta…
- Royalty
- 5.0%
- 13th pct Service Resta…
- Units
- 612
- 90th pct Service Resta…
- SBA default
- 14.5%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 2001. Systems this mature have refined operations and brand recognition.
Franchised units fell from 658 to 606 over 3 years. Investigate why operators are leaving.
Bottom line
- Total investment $745K – $1.8M including a $31K franchise fee, 5.0% ongoing royalty.
- Average unit revenue of $1.2M/year (median $1.2M).
- Verdict B (Above Average) with a risk score of 54/100. SBA loan charge-off rate of 14.5% across 79 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- System contracting at -7.9% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Moe’s Franchisor SPV LLC
- Parent company
- GoTo Foods LLC
- Predecessor
- and offered
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 5620 Glenridge Drive NE, Atlanta, Georgia 30342
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $259.8M
- vs $299.2M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
Franchisees operate Moe's Southwest Grill locations, managing fast-casual restaurant operations that serve customizable Mexican-inspired bowls, burritos, and tacos. Day-to-day responsibilities include food preparation, inventory management, staffing, customer service, and marketing within their protected territory. Franchisees are responsible for lease negotiation, permitting, labor compliance, and achieving the $1.23M average revenue benchmark while paying 5% royalties to the franchisor.
- CEO
- James (Jim) E. Holthouser
- Headquarters
- GA
- Founded
- 2001
- FDD year
- 2024
- States available
- 36
FDD Item 7 · 2024 filing · 23 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $31K | $31K | |
| Construction and Build Out Costsnot refundable | $336K | $1.0M | |
| Permittingnot refundable | $3K | $18K | |
| Equipment Packagenot refundable | $168K | $171K | |
| Millworknot refundable | $43K | $55K | |
| Furniturenot refundable | $19K | $30K | |
| Menu Board, Graphics and Interior Signagenot refundable | $6K | $12K | |
| Exterior Signagenot refundable | $14K | $86K | |
| Computer Systemnot refundable | $13K | $50K | |
| Smallwaresnot refundable | $17K | $21K | |
| TV/Musicnot refundable | $3K | $5K | |
| Architect/Engineernot refundable | $6K | $57K | |
| Rentnot refundable | $5K | $20K | |
| Grand Opening Marketingnot refundable | $25K | $35K | |
| Legal and Accounting Feesnot refundable | $4K | $50K | |
| Insurancenot refundable | $1K | $8K | |
| Misc. Opening Costs/Office Suppliesnot refundable | $3K | $5K | |
| Security Depositsnot refundable | $2K | $8K | |
| Management Training Program Feenot refundable | $0 | $8K | |
| Travel and Living Expenses during Trainingnot refundable | $8K | $12K | |
| Total initial investment | $745K | $1.8M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$172K
14.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
7.7 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $745K – $1.8M
- Below avg, review vs category
- Liquid capital req'd
- $25K – $53K
- Near category avg vs category
- Franchise fee
- $31K – $31K
- Near category avg vs category
- Royalty
- 5.0%
- Gross Sales · typical 6–8%
- Ad fund
- 3.0%
- typical 3–5%
- Total fee load
- 8.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 3.0% of gross sales |
| Technology fee | $0 |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Inventory (initial) | $32K – $56K |
| Total fee load | 8.0% of rev |
Financial Performance
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.2M
- Item 19 type
- net_sales
- Sample size
- 496 units
- vs category median 28 · large
- Range (low → high)
- $433K→$3.1M
- Cohort dispersion (min → max)
- Quartile band
- $738K→$1.8M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 4 / 5
- vs category median 4 / 5 · typical
Compared against 453 Quick-Service Restaurants brands
Revenue is only 1.0x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Quick-Service Restaurants averages
How Moe’s Southwest Grill Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 612
- Opened
- 12
- Last reporting year
- Closed
- 37
- Turnover rate
- 6.0%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (yr3)
- -4.7%
- Net unit change last year
- 3-yr CAGR
- -7.9%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 0
- Terminated (3yr)
- 37
- Non-renewed (3yr)
- 5
- Transfers (3yr)
- 46
- Reacquired (3yr)
- 0
- Franchisor bought back
- Termination rate
- 6.6%
- Franchisor-initiated terminations
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 5 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Available to sell in · Item 12
- Michigan
States where the franchisor is registered to sell new franchises (FDD registration filings).
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 79
- Loan volume
- $41.3M
- Median loan
- $360K
- 50th percentile
- Charge-off rate
- 14.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.5%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 42
- Defaults
- 8
Vintage analysis
Moe’s Southwest Grill charge-off rate by loan vintage
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Moe's presents caution-level risk: declining unit economics, significant franchisor-franchisee litigation, opaque profitability data, and high capital requirements create meaningful downside exposure despite protected territories.
Litigation (Item 3)
4 case reference(s): 2 pending, 6 settled.
Largest disclosed settlement: $2
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 54 / 100 rating
- 01MINORDeclining unit count (-4.7% YoY) indicates system contraction and potential franchisee struggles
- 02HIGHActive litigation with Taylor Investment Partners II involving breach of contract and nonrenewal claims suggests franchisor-franchisee relationship deterioration
- 03MEDNet Income not disclosed in Item 19 prevents ROI validation; only average revenue of $1.23M provided without profitability data
- 04MINORHigh investment range ($745K-$1.82M) requires strong returns, but profitability metrics unavailable for due diligence
- 05HIGH20-year term is lengthy commitment with litigation precedent showing disputes over renewal rights
- 06HIGHTrademark infringement claims in litigation indicate potential brand protection issues affecting franchisee value
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Georgia |
| Litigation count | 3 |
View Item 3 litigation summary
4 case reference(s): 2 pending, 6 settled.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 150 hrs
- Training location
- On-site and franchisor location
- Site selection
- franchisee
- Franchisor financing
- Offered
- Item 10
- POS system
- POS System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: POS System
Item 20 · call current owners
Franchisee Contacts
11 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Moe’s Southwest Grill · FDD (2024) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Moe’s Southwest Grill franchise?
The total investment to open a Moe’s Southwest Grill franchise ranges from $745K – $1.8M, with an initial franchise fee of $31K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Moe’s Southwest Grill franchise owners earn?
According to Item 19 of the Moe’s Southwest Grill FDD, the average gross sales per unit is $1.2M. The median is $1.2M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Moe’s Southwest Grill's franchise failure rate?
Based on SBA 7(a) loan data, Moe’s Southwest Grill has a charge-off rate of 14.5% across 79 loans, meaning 14.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Moe’s Southwest Grill franchise locations are there?
As of their most recent FDD filing, Moe’s Southwest Grill has 612 total units in the United States, including 658 franchised units and 6 company-owned units. 12 new units were opened in the latest reporting year.
Is Moe’s Southwest Grill a good franchise to buy?
FranchiseVerdict rates Moe’s Southwest Grill as a B-grade franchise with a risk score of 54 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.