In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Moe’s Southwest Grill franchise, based on Item 7 of the company’s 2023 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Moe’s Southwest Grill franchise, based on Items 5 and 6 of the company’s 2023 FDD

Section III – Number of franchised and company-owned Moe’s Southwest Grill outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD

Section IV – News updates on the Moe’s Southwest Grill franchise opportunity

Section V – Presentation and analysis of Moe’s Southwest Grill’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:

• fiscal year 2022 average, median, highest, and lowest net sales for the 519 franchised traditional Moe’s Southwest Grill restaurants, including strip shopping centers, power centers, and street-level retail, that reported sales in all 52 weeks of fiscal year 2022 and were owned by the same owner throughout fiscal year 2022

Section VI – Key ratios, comparables, computations, and analyses for the Moe’s Southwest Grill franchise opportunity (exclusive content for Platinum subscribers)

Section I – Moe’s Southwest Grill Franchise Costs

• Moe’s Southwest Grill franchise costs, based on Item 7 of the company’s 2023 FDD:

• Initial Franchise Fee:  $30,500
• Construction and Build Out Costs:  $314,000 to $1,093,950
• Permitting:  $8,200 to $17,500
• Equipment Package:  $106,000 to $148,590
• Millwork:  $35,000 to $52,000
• Furniture:  $26,000 to $40,950
• Menu Board, Graphics, and Interior Signage:  $7,000 to $12,000
• Exterior Signage:  $8,000 to $85,700
• Computer System:  $11,000 to $47,000
• Smallwares:  $14,000 to $20,000
• TV/Music:  $2,000 to $5,000
• Architect/Engineer:  $9,000 to $32,000
• Rent:  $4,500 to $20,000
• Grand Opening Marketing:  $25,000 to $35,000
• Legal and Accounting Fees:  $3,500 to $50,000
• Insurance:  $1,375 to $7,300
• Miscellaneous Opening Costs/Office Supplies:  $2,500 to $5,000
• Security Deposits:  $1,500 to $8,000
• Training Fees:  $0 to $3,900
• Travel and Living Expenses During Training:  $10,000 to $40,000
• Opening Inventory:  $15,000 to $35,000
• Additional Funds for 3 Months:  $25,000 to $50,000
• Total Estimated Moe’s Southwest Grill Franchise Costs:  $659,075 to $1,839,390

Section II – Moe’s Southwest Grill’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Moe’s Southwest Grill’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:

• Initial Franchise Fee:  $30,500
• Royalty Fee:  5% of Net Sales
• Advertising Contribution:  3% of Net Sales
• Advertising Cooperative Contribution:  an amount set by your Advertising Cooperative
• Local Marketing Obligation:  each calendar quarter, you must spend not less than 1% of Net Sales on local market advertising

Section III – Number of Franchised and Company-Owned Moe’s Southwest Grill Outlets

Franchised

2020

• Outlets at the Start of the Year:  719
• Outlets at the End of the Year:  679
• Net Change:  -40

2021

• Outlets at the Start of the Year:  679
• Outlets at the End of the Year:  658
• Net Change:  -21

2022

• Outlets at the Start of the Year:  658
• Outlets at the End of the Year:  636
• Net Change:  -22

Company-Owned

2020

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  2
• Net Change:  -1

2021

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  1
• Net Change:  -1

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Moe’s Southwest Grill Franchise

• How Moe’s Southwest Grill Plans to Rapidly Expand

• Focus Brands Reports Record System-Wide Sales During Fiscal Year 2022

• Moe’s Southwest Grill Coming to Niagara Falls

• Moe’s Southwest Grill Ranked No. 293 on Entrepreneur’s 2023 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Moe’s Southwest Grill Franchise (Item 19, 2023 FDD)

• This Item 19 presents information about the financial performance during Fiscal Year 2022 (the fiscal year ended December 25, 2022) of certain Traditional Franchises that were eligible franchises in Fiscal Year 2022.

• A “Traditional Franchise” is a franchised Restaurant located in a traditional location, including strip shopping centers, power centers, and street-level retail.

• An “eligible franchise” is a franchise that reported sales in all 52 weeks of Fiscal Year 2022 and was owned by the same owner throughout Fiscal Year 2022.

• This Item 19 does not include data related to (i) franchised Restaurants located in non-traditional locations (such as airports, colleges, convenience stores, government buildings, hospitals, hotels, lifestyle centers, malls (including open air, traditional, and outlet malls), military bases, office building interiors, theme parks, transit hubs, and travel plazas); (ii) Traditional Franchises that are co-branded with another brand; (iii) affiliate-owned Restaurants; and (iv) Traditional Franchises that were not eligible franchises in Fiscal Year 2022.

• The financial performance and operations of these excluded Restaurants can vary significantly from the performance and operations of the Traditional Franchises that are represented in this Item 19.

Average Net Sales by Quartile for Traditional Franchises for Fiscal Year 2022

Top Quartile

• Average Net Sales:  $1,726,333
• Number and Percentage of Restaurants Attaining or Exceeding Average Net Sales:  49/130 (38%)
• Median Net Sales:  $1,643,840
• Lowest Net Sales:  $1,388,807
• Highest Net Sales:  $2,939,935

2nd Quartile

• Average Net Sales:  $1,231,355
• Number and Percentage of Restaurants Attaining or Exceeding Average Net Sales:  62/130 (48%)
• Median Net Sales:  $1,225,038
• Lowest Net Sales:  $1,101,836
• Highest Net Sales:  $1,388,479

3rd Quartile

• Average Net Sales:  $969,100
• Number and Percentage of Restaurants Attaining or Exceeding Average Net Sales:  61/129 (47%)
• Median Net Sales:  $963,676
• Lowest Net Sales:  $855,938
• Highest Net Sales:  $1,100,910

Bottom Quartile

• Average Net Sales:  $708,540
• Number and Percentage of Restaurants Attaining or Exceeding Average Net Sales:  70/130 (54%)
• Median Net Sales:  $726,539
• Lowest Net Sales:  $349,724
• Highest Net Sales:  $855,570

Total

• Average Net Sales:  $1,159,198
• Number and Percentage of Restaurants Attaining or Exceeding Average Net Sales:  230/519 (44%)
• Median Net Sales:  $1,101,836
• Lowest Net Sales:  $349,724
• Highest Net Sales:  $2,939,935

• As of December 25, 2022, there were 542 Traditional Franchises. Of those 542 locations, 519 (95.8%) Traditional Franchises are represented in this table.

• This table does not include (i) 10 Traditional Franchises that did not report sales in all 52 weeks of Fiscal Year 2022, (ii) nine Traditional Franchises that opened during Fiscal Year 2022, and (iii) four Traditional Franchises that were co-branded.

• This table also does not include 22 Traditional Franchises that permanently closed during Fiscal Year 2022, all of which had been open for at least 12 months prior to closing.

• No Traditional Franchises were reacquired by Moe’s in Fiscal Year 2022.

• Some Restaurants have sold or earned this amount. Your individual results may differ. There is no assurance that you’ll sell or earn as much.

• “Net Sales” includes all revenues generated by a Restaurant or conducted from or with respect to a Restaurant, whether the sales are evidenced by cash, check, credit, charge, account, barter, or exchange, but does not include (a) the initial sales or reloading of gift cards, (b) discounts, (c) the sale of food or merchandise for which refunds have been made in good faith to customers, (d) the discounted portion of employee meals, (e) sales, meals, use, or excise tax imposed by a governmental authority directly on sales and collected from customers, provided that the amount for the tax is added to the selling price or absorbed therein and is actually paid by you to a governmental authority, (f) the sale of equipment used in the operation of the Restaurant, or (g) tips.

• These sales figures do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the Net Sales figures to obtain your net income or profit.

• Moe’s calculated the figures in the tables in these financial performance representations using financial reports submitted by franchisees. Moe’s has not audited or independently verified these financial reports nor has it asked questions of the submitting franchisees to determine whether they are in fact accurate and complete, although Moe’s has no information or other reason to believe that they are unreliable. No certified public accountant has audited these figures or expressed his or her opinion concerning their content or form.

Section VI – Moe’s Southwest Grill Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️