Moe’s Southwest Grill Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Moe's Southwest Grill is a fast-casual franchise serving customizable Mexican-style burritos, bowls, tacos, and queso. Franchisees run counter-service restaurants managing food prep, staffing, catering, and local marketing.
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 2026 FDD, average unit revenue was $1.2M[2]. SBA 7(a) loans show a 14.5% charge-off rate across 79 loans[1]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $745K – $1.8M
- 88th pct Service Resta…
- Avg gross sales
- $1.2M
- Outlet subsetNet sales20th pct Service Resta…
- Royalty
- 5.0%
- 11th pct Service Resta…
- Units
- 612
- 91st pct Service Resta…
- SBA charge-off
- 14.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = favorable by >10% vs Quick-Service Restaurants avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $745K – $1.8M including a $31K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.2M/year (median $1.1M) (reported for a subset of outlets rather than the whole system).
- RISKVerdict A (Strongest tier), verdict score 63/100 (higher is better). SBA loan charge-off rate of 14.5% across 79 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- FLAG37 units terminated last reporting year (6.0% of the system). Ask existing franchisees why.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Moe's Franchisor SPV LLC
- Parent company
- GoTo Foods Systems LLC
- Ultimate parent
- GoTo Foods LLC
- Predecessor
- Moe's Franchisor LLC (MFL)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- James (Jim) E. Holthouser
- Incorporated in
- DE
- HQ
- 5620 Glenridge Drive NE, Atlanta, Georgia 30342
- Auditor
- Grant Thornton LLP
- Audited financials
- Franchisor revenue
- $299.2M
- vs $259.8M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- James (Jim) E. Holthouser
- Headquarters
- GA
- Founded
- 2017
- FDD year
- 2026
- States available
- 36
Can you afford it, and what does the money buy?
Entry cost runs 95% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown23 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.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $745K – $1.8M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $53K
- Middle of category vs category
- Franchise fee
- $31K – $31K
- Middle of category vs category
- Royalty
- 5.0%
- percentage · 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 | $210 |
| Training fee | $8K |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Inventory (initial) | $15K – $35K |
| Total fee load | 8.0% of rev |
What do units actually make?
Average unit sales land near the quick-service restaurants norm.
Reported for a subset of outlets rather than the whole system
Reported as net sales, not gross sales
Source: FDD 2026 · Item 19
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
$166K
14.0% margin
Unlevered ROIC
13%
EBITDA / total invested capital
Payback
8.0 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Moe’s Southwest Grill unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
13%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Moe’s Southwest Grill units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.7M
on $8.3M purchase
Total debt
$6.6M
SBA $4.1M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
Reported for a subset of outlets rather than the whole system
Reported as net sales, not gross sales
- Avg gross sales
- $1.2M
- Per unit, per year
- Median gross sales
- $1.1M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Net Sales by Quartile
- Sample size
- 464 outlets
- vs category median 20 · large
- Range (low → high)
- $456K→$3.0M
- Cohort dispersion (min → max)
- Quartile band
- $738K→$1.8M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Reporting year
- 2023
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2023
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 782 Quick-Service Restaurants brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.2M/year in gross sales. Revenue-to-investment ratio: 0.9x. Reported for a subset of outlets rather than the whole system.
Fee burden
Total ongoing fee load of 8.0% (near the Quick-Service Restaurants average).
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -7.9% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Quick-Service Restaurants averages
How Moe’s Southwest Grill Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 612
- Opened
- 12
- Last reporting year
- Closed
- 0
- Terminated
- 37
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 6.1%
- Company-owned
- 6
- Corporate units in the system
- % franchised
- 99%
- vs corporate-owned
- Net growth (3-yr)
- -7.9%
- Net unit change over 3 years
- 3-yr CAGR
- -7.9%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 0
- Terminated (3yr)
- 37
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 46
- Reacquired (3yr)
- 5
- 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
- Typical loan rate
- 6.3%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 7225
- Jobs supported
- 1,688
- 4.1 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Moe’s Southwest Grill charge-off rate by loan vintage
Top lenders financing Moe’s Southwest Grill franchisees
Showing 3 of 42 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
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)
Two pending actions involving Taylor Investment Partners: (1) TIP sued Moe's/MFL/GoTo Foods over franchise non-renewal (Moe's as defendant); (2) Moe's sued TIP for trademark infringement (Moe's as plaintiff). One concluded predecessor case (MFL v. TIP) settled March 2019. Affiliate disclosures: Arby's and Dunkin' no-poach settlements listed as affiliate matters only.
Largest disclosed settlement: $650,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 63 / 100 verdict
- 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
- 03MINORHigh investment range ($745K-$1.82M) requires strong returns, but profitability metrics unavailable for due diligence
- 04HIGH20-year term is lengthy commitment with litigation precedent showing disputes over renewal rights
- 05HIGHTrademark infringement claims in litigation indicate potential brand protection issues affecting franchisee value
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 8.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Non-compete (miles)ℹ | 3 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Termination groundsℹ | 1 |
| Curable defaultsℹ | 7 |
| Mandatory arbitration | Yes |
| Arbitration location | Metropolitan area of district court where franchisor's principal place of business is located (currently Georgia) |
| Jury trial waiver | Yes |
| Governing law | GA |
| Litigation count | 3 |
View Item 3 litigation summary
Two pending actions involving Taylor Investment Partners: (1) TIP sued Moe's/MFL/GoTo Foods over franchise non-renewal (Moe's as defendant); (2) Moe's sued TIP for trademark infringement (Moe's as plaintiff). One concluded predecessor case (MFL v. TIP) settled March 2019. Affiliate disclosures: Arby's and Dunkin' no-poach settlements listed as affiliate matters only.
Items 10, 11
Training & Operations
- Classroom training
- 50 hrs
- On-the-job training
- 150 hrs
- Training location
- Online modules (classroom) and Certified Training Locations designated by franchisor (OJT)
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not 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 (2026) 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 $1.1M. Important context: Reported for a subset of outlets rather than the whole system. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Moe’s Southwest Grill FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Moe’s Southwest Grill FDD and qualifies whose outlets they describe.
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 606 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 A-grade franchise with a verdict score of 63 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.