Moe’s Southwest Grill Franchise Cost, Revenue & Review 2026
- Investment
- $644K – $2.0M
- Disclosed sales
- $1.2M
- gross sales, not profit
- SBA charge-off
- 12.7%
- on 215 loans
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 $644K – $2.0M, including a $36K 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 12.7% charge-off rate across 215 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $644K – $2.0M
- 84th pct Service Resta…
- Avg gross sales
- $1.2M
- Outlet subsetNet sales23rd pct Service Resta…
- Royalty
- 5.0%
- 12th pct Service Resta…
- Units
- 568
- 90th pct Service Resta…
- SBA charge-off
- 12.7%
- % 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 median · 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 $644K – $2.0M including a $36K 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 B (Above average), verdict score 63/100 (higher is better). SBA loan charge-off rate of 12.7% across 215 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -28 franchised outlets in the latest year (15 opened, 43 closed); 127 signed but not yet open (Item 20).
- FLAG40 units terminated last reporting year (7.0% 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
- FDD Item 1, page 10 of the 2026 FDD
- Ultimate parent
- GoTo Foods LLC
- FDD Item 1, page 10 of the 2026 FDD
- 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.
Same owner · FDD Item 1, page 10
6 other brands on this site name GoTo Foods LLC as parent or ultimate parent in their own FDD.
Grouped by the owner's name as each filing prints it (this page: the 2026 FDD). Spelling variants of the same group may be listed apart; a brand is never grouped with an owner its filing does not name.
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 169% above the typical quick-service restaurants franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown24 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee1 | $36K | $36K | |
| Construction and Build Out Costs – Inline and Endcap2 | — | — | |
| Construction and Build Out Costs – Freestanding2 | $260K | $1.1M | |
| Permitting3 | $2K | $18K | |
| Equipment Package4 | $168K | $285K | |
| Millwork5 | $21K | $62K | |
| Furniture6 | $15K | $30K | |
| Menu Board, Graphics and Interior Signage7 | $8K | $10K | |
| Exterior Signage8 | $14K | $35K | |
| Computer System9 | $13K | $50K | |
| Smallwares10 | $10K | $22K | |
| TV/Music11 | $2K | $5K | |
| Architect/Engineer12 | $10K | $25K | |
| Rent 13 | $5K | $20K | |
| Grand Opening Marketing14 | $25K | $35K | |
| Legal and Accounting Fees15 | $4K | $50K | |
| Insurance16 | $1K | $8K | |
| Misc. Opening Costs/Office Supplies17 | $3K | $5K | |
| Security Deposits18 | $2K | $8K | |
| Management Training Program Fee19 | $0 | $8K | |
| Total initial investment | $644K | $2.0M |
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
- $644K – $2.0M
- Bottom third — review vs category
- Liquid capital req'd
- $25K – $53K
- Middle of category vs category
- Franchise fee
- $36K – $36K
- Middle of category vs category
- Royalty
- 5.0%
- 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 net sales |
| Marketing / ad fund | 3.0% of net 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 run 21% above 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 · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Moe’s Southwest Grill until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
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, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own 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?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
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%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
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 19 · large
- Range (low → high)
- $456K→$3.0MCited, not corroborated — printed on page 83 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $738K→$1.8M
- Bottom 25% → top 25%
- 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 781 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 median).
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 medians
How Moe’s Southwest Grill Compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 568
- Opened
- 15
- Last reporting year
- Closed
- 43
- Terminated
- 40
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 3
- Term expired, not renewed (per Item 20)
- Turnover rate
- 7.6%
- Company-owned
- 5
- 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
Last fiscal year · Item 20 exits and transfers
- Terminated
- 40
- Not renewed
- 3
- Transferred
- 46
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 127
- 0.22 per open outlet · Item 20 Table 5
- Projected new
- 23
- Franchisor's next-year forecast
- 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).
Where the owners are · Item 20 owner list
0 current owners across 0 states; 11 former (terminated, transferred or not renewed) listed separately.
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 215
- Loan volume
- $91.4M
- Median loan
- $345K
- 50th percentile
- Charge-off rate
- 12.7%
- on 215 loans · 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)
- 87.3%
- 5-yr charge-off
- 25.0%
- Loans approved 2021+
- Active lenders
- 91
- Defaults
- 24
- Typical loan rate
- 6.2%
- avg rate to borrowers
- Franchised industry avg
- 21.5%
- brand beats franchise avg ↓
- Jobs supported
- 6,659
- 4.1 per loan
- Lender concentration
- 8%
- top lender's share
Borrower mix: 7% went to startups / new businesses, 93% to established operators
Franchise vs independent — in limited-service restaurants, franchised businesses charge off at 21.5% vs 25.0% for independents — franchising is associated with 14% lower SBA default risk in this category.
Vintage analysis
Moe’s Southwest Grill charge-off rate by loan vintage
Top lenders financing Moe’s Southwest Grill franchisees
Showing 3 of 91 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.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Moe’s Southwest Grill from SBA 7(a) FOIA data.
- Principal loss rate
- 7.2%
- Avg SBA guarantee
- 72%
- Avg interest rate
- 6.21%
- Avg chargeoff amount
- $274K
- Lender concentration
- 7.6%
- Job velocity
- 4.1 per $100K
- Jobs supported
- 6,659
Top SBA lendersTop lender holds 8% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | 13 | N/A | N/A | |
| 2 | 12 | N/A | N/A | |
| 3 | 12 | N/A | N/A | |
| 4 | 9 | N/A | N/A | |
| 5 | 7 | N/A | N/A |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| GAGeorgia | 12 | 1 | 12.5% |
| INIndiana | 7 | 2 | 33.3% |
| PAPennsylvania | 7 | 0 | 0.0% |
| OHOhio | 6 | 0 | 0.0% |
| TNTennessee | 6 | 1 | 25.0% |
| ILIllinois | 5 | 0 | 0.0% |
| NJNew Jersey | 5 | 0 | 0.0% |
| NYNew York | 4 | 1 | 25.0% |
| TXTexas | 4 | 2 | 50.0% |
| ARArkansas | 3 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans charge off at 12.7% — 21% below the 16.0% national norm, i.e. lower lender-observed risk.
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)
Subject: the franchisor is a named party (defendant).
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: $1,800,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Grant Thornton LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Item 21 financial statements are the audited consolidated statements of GoTo Foods Systems LLC (formerly Focus Brands Systems LLC), the franchisor's parent and guarantor of franchise obligations. Total revenues consist entirely of franchise revenues; figures stated in thousands, fiscal year ended December 31, 2023.
ⓘ 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
Litigation case detail7 matters · Item 3
Litigation cases
The franchisor
Concluded (2)
Moe’s Franchisor SPV LLC v. Taylor Investment Partners II, LLC; TIP II-Ansley, LLC and TIP II-Suburban, LLC
settledBrought against a franchisee · filed 2024-03-12 · United States District Court, Northern District of Georgia · Civil Action File No. 1:24-cv-1096-SCJ
“Moe’s Franchisor SPV LLC v. Taylor Investment Partners II, LLC; TIP II-Ansley, LLC and TIP II-Suburban, LLC, United States District Court, Northern District of Georgia, Civil Action File No. 1:24-cv-1096-SCJ. On March 12, 2024, we filed a lawsuit against the TIP Parties for federal trademark infringement, federal unfair competition, breach of contract, injunctive relief, monetary damages, and”Page 26 of the 2026 FDD, Item 3
Outcome:“the lawsuit was voluntarily dismissed with prejudice on August 26, 2024, and the appeals were withdrawn and the parties agreed to dismiss the following related action:”
Taylor Investment Partners II, LLC; TIP II-Ansley, LLC; and TIP II-Suburban, LLC v. Moe’s Franchisor SPV LLC; Moe’s Franchisor LLC; and GoTo Foods LLC
settledBrought by a franchisee · filed 2024-03-01 · Superior Court of Fulton County, Georgia · Civil Action File No. 24CV002585
“Taylor Investment Partners II, LLC; TIP II-Ansley, LLC; and TIP II-Suburban, LLC v. Moe’s Franchisor SPV LLC; Moe’s Franchisor LLC; and GoTo Foods LLC, Superior Court of Fulton County, Georgia, Civil Action File No. 24CV002585. On March 1, 2024, Taylor Investment Partners II, LLC (“TIP”), a Moe’s franchisee, and two related operating entities (collectively, the “TIP Parties”) filed a lawsuit”Page 25 of the 2026 FDD, Item 3
Outcome:“On August 23, 2024, the parties entered into a settlement agreement in which (i) the parties agreed to dismiss all claims and counterclaims, (ii) an affiliate of Moe’s agreed to purchase TIP’s restaurant and all of its operating assets for $1,800,000” (page 26)
Parent, affiliates and predecessor
Concluded (5)
New York v. Dunkin’ Brands, Inc.
concludedGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-09-26 · N.Y. Supreme Court for New York County · 451787/2019
“New York v. Dunkin’ Brands, Inc. (N.Y. Supreme Court for New York County, Case No. 451787/2019, filed September 26, 2019). In this matter, the N.Y. Attorney General (“NYAG”) filed a lawsuit against our affiliate, DBI, related to credential-stuffing cyberattacks during 2015 and 2018. The NYAG alleged that the cyber attackers used individuals’ credentials obtained from elsewhere on the Internet to”Page 27 of the 2026 FDD, Item 3
Outcome:“the NYAG entered into a consent agreement to resolve the State’s complaint. Under consent order, DBI agreed to pay $650,000 in penalties and costs, issue certain notices and other types of communications to New York customers, and maintain a comprehensive information security program through September 2026, including precautions and response measures for credential- stuffing attacks.” (page 28)
The People of the State of California v. Arby’s Restaurant Group, Inc.
settledGovernment or regulatory action · Arby’s Restaurant Group, Inc. (ARG) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09397
“The People of the State of California v. Arby’s Restaurant Group, Inc. (California Superior Court, Los Angeles County, Case No. 19STCV09397, filed March 19, 2019). On March 11, 2019, our affiliate, Arby’s Restaurant Group, Inc. (“ARG”), entered into a settlement agreement with the states of California, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Jersey, New York, North Carolina,”Page 27 of the 2026 FDD, Item 3
Outcome:“Under the settlement agreement, ARG paid no money but agreed (a) to remove the disputed provision from its franchise agreements (which it had already done); (b) not to enforce the disputed provision in existing agreements or to intervene in any action by the Attorneys General if a franchisee seeks to enforce the provision; (c) to seek amendments of the existing franchise agreements in the”
The People of the State of California v. Dunkin’ Brands, Inc.
settledGovernment or regulatory action · Dunkin’ Brands, Inc. (DBI) · filed 2019-03-19 · California Superior Court, Los Angeles County · 19STCV09597
“The People of the State of California v. Dunkin’ Brands, Inc., (California Superior Court, Los Angeles County, Case No. 19STCV09597, filed on March 19, 2019.) On March 14, 2019, our affiliate, Dunkin Brands, Inc. (“DBI”), entered into a settlement agreement with the Attorneys General of 13 states and jurisdictions concerning the inclusion of “no-poaching” provisions in Dunkin’ restaurant”Page 27 of the 2026 FDD, Item 3
Outcome:“The Attorney General of the State of California filed the above-reference lawsuit in order to place the settlement agreement in the public record, and the action was closed after the court approved the parties’ stipulation of judgment.”
Moe’s Franchisor LLC v. Taylor Investment Partners, II, LLC; Tip II-Ansley, LLC; and Tip II-Suburban, LLC
settledBrought against a franchisee · Moe’s Franchisor LLC (MFL), the franchisor at the time · filed 2016-12-06 · Superior Court of Fulton County, Georgia · 2016-cv-283467
“Moe’s Franchisor LLC v. Taylor Investment Partners, II, LLC; Tip II-Ansley, LLC; and Tip II- Suburban, LLC, Superior Court of Fulton County, Georgia, Case No. 2016-cv-283467. On December 6, 2016, MFL, which was the franchisor of Moe’s Southwest Grill® franchises at the time, filed a lawsuit against the TIP Parties to enforce the termination of defendants’ franchise agreements for two Restaurants”Page 26 of the 2026 FDD, Item 3
Outcome:“On March 8, 2019, the parties entered into a settlement agreement in which (i) the parties agreed to dismiss all claims and counterclaims, (ii) MFL agreed to reinstate defendants’ franchise agreements (which we agreed to do on MFL’s behalf), (iii) the parties exchanged general releases of all claims against each other, and (iv) the parties agreed that the settlement would not be construed as an”
In the Matter of Jimmy John’s Franchisor SPV LLC
concludedGovernment or regulatory action · Jimmy John’s Franchisor SPV LLC · Securities Commissioner of Maryland · 2025-0122
“In the Matter of Jimmy John’s Franchisor SPV LLC (Securities Commissioner of Maryland, Case No. 2025-0122). On March 28, 2022, Jimmy John’s filed a Franchise Disclosure Document (FDD) with the Maryland Securities Division as part of a notice of exemption from franchise registration. In this filing, Jimmy John’s listed the former franchisees but omitted the required contact information for the”Page 28 of the 2026 FDD, Item 3
Outcome:“the Maryland Securities Commissioner and Jimmy John’s entered into a Consent Order on June 9, 2025. Under the terms of the Consent Order, Jimmy John’s agreed to pay a $30,000 civil monetary penalty, to permanently cease and desist from the offer or sale of franchises in violation of the Maryland Franchise Law, and to disclose the existence of the Consent Order in future franchise disclosure”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
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 territory |
| 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 | 7 |
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
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 $644K – $2.0M, with an initial franchise fee of $36K. 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; Reported as net sales, not gross sales. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Moe’s Southwest Grill?
Moe’s Southwest Grill is franchised by Moe's Franchisor SPV LLC. Its parent company is GoTo Foods Systems LLC. The ultimate parent named in the FDD is GoTo Foods LLC. Source: FDD Item 1, 2026 filing.
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 12.7% across 215 loans, meaning 12.7% 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 568 total units in the United States, including 563 franchised units and 5 company-owned units. 15 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 verdict score of 63 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. 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.