Question 1

Is Schlotzsky’s or Moe’s Southwest Grill cheaper to open?

Accepted Answer

Schlotzsky’s costs $647,875–$1,951,300 and Moe’s Southwest Grill costs $644,425–$1,968,450 to open (FDD Item 7). Moe’s Southwest Grill has the lower entry cost.

Question 2

Which earns more, Schlotzsky’s or Moe’s Southwest Grill?

Accepted Answer

Schlotzsky’s reports $1,126,331 average annual unit revenue vs $1,182,975 for Moe’s Southwest Grill (FDD Item 19). Moe’s Southwest Grill is higher. For Schlotzsky’s: Reported as net sales, not gross sales. For Moe’s Southwest Grill: Reported for a subset of outlets rather than the whole system; Reported as net sales, not gross sales.

Question 3

Which is safer, Schlotzsky’s or Moe’s Southwest Grill?

Accepted Answer

SBA 7(a) charge-off rate is 20.6% for Schlotzsky’s and 12.7% for Moe’s Southwest Grill. Lower is safer, so Moe’s Southwest Grill has the stronger loan-repayment record.

Question 4

Which is the better franchise, Schlotzsky’s or Moe’s Southwest Grill?

Accepted Answer

FranchiseVerdict grades Schlotzsky’s B and Moe’s Southwest Grill B, from FDD Items 5–7, 19–21 and SBA loan performance. See the full side-by-side above.

Metric	Schlotzsky’s	Moe’s Southwest Grill
Verdict Grade	BAbove averageAbove average	BAbove averageAbove average
Investment Range	$648K – $2.0M	$644K – $2.0M
Franchise Fee	$36K	$36K
Royalty Rate	6.0%	5.0%
Average Revenue (Item 19)	$1.1M	$1.2MOutlet subset
SBA Charge-Off Rate	20.6% (533 loans)	12.7% (215 loans)
Total Units	308	568
Unit Growth (YoY)	-15 units	-28 units
Year Began Franchising	2017	2017
FDD Year	2025	2026

Schlotzsky’s vs Moe’s Southwest Grill