Moe's Southwest Grill^®

Food & Beverage • Year: 2025

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What Is Moe's Southwest Grill?

Moe's Southwest Grill is a fast-casual franchise featuring southwestern food and other food and beverage products. The business operates across on-premises consumption as well as delivery and carry-out service channels. Restaurants may also offer alcoholic beverages as part of their food and beverage sales.

Moe's Southwest Grill Franchise: Pros and Cons

The franchise's standout strength is its perfect training and support score of 100, which shortens the learning curve and lowers operational risk, while the biggest risk is the very high Item 7 estimated initial investment ranging from $869,725 to $2,390,950, which raises upfront capital and financing burdens.

Pros

Training and support score is 100, well above typical for all systems-this level of support shortens your learning curve and reduces operational risk during launch and scaling.

125 signed-but-not-open outlets (relative to 596 total outlets) is large and well above typical for Food & Beverage-this indicates strong unit sales momentum and a growth pipeline you can plug into as the brand expands.

Manager required equity percentage is 0, well below typical for Food & Beverage-gives you flexibility to hire and compensate managers without mandatory ownership stakes, simplifying staffing and ownership arrangements.

Cons

Item 7 total minimum is $869,725 and total maximum is $2,390,950, both well above typical for Food & Beverage-this materially raises the upfront capital and financing burden required to open a unit.

A high number of legal and enforcement items is well above typical for Food & Beverage (6 disclosed lawsuits, 3 government penalties, 3 fraud allegations, 2 franchisor enforcement actions, plus franchisee settlements), suggesting recurring friction between the franchisor and operators that can increase operating distractions and compliance costs.

Item 7 training max is $37,500 and Item 7 assets range from $248,200 to $455,700, all well above typical for all systems-these figures increase your initial cash outlay and may complicate financing and cash flow planning.

Lawsuits & Legal Risk

71/100

NORMAL

Moe's Southwest Grill: The Facts: Recent state and federal disputes with franchisee TIP over nonrenewal and alleged unauthorized trademark use were litigated and resolved via settlement (restaurant sale and mutual releases) without admission of liability; affiliates disclosed unrelated no‑poach and data‑security settlements. The Advice: Review renewal and post‑termination obligations, trademark use rights, and Item 12 territorial protections during due diligence.

Territory Protection

43/100

NORMAL

Moe's Southwest Grill grants a negotiated, site-specific protected Area of Protection only after an Accepted Location is approved, with no pre-existing exclusivity. Territory rights are contingent on meeting performance quotas; franchisor may sell via e-commerce/alternative channels and develop additional nearby units, and captive-audience and delivery kitchens are excluded from protection.

Training & Support

100

Excellent

Moe's Southwest Grill provides a comprehensive 200-hour training curriculum designed to prepare two managerial staff members included in the initial franchise fee through classroom instruction, operational procedures, and hands-on restaurant experience. The program includes on-site launch support focused on operational readiness; on-site assistance is available for an additional fee, and franchisees are responsible for travel and living expenses.

Unit Growth Analysis

This franchise is in a clear but moderate decline, falling from 659 units in 2022 to 596 in 2025 (a cumulative loss of 63 units, −9.6%), with year-over-year changes of −3.3% (2022→23), −3.9% (2023→24) and −2.6% (2024→25). For investors this signals weakening franchise scale and operational stress, but the improvement in the latest year (decline slowing from −3.9% to −2.6%) suggests the contraction rate may be stabilizing rather than accelerating; further due diligence should focus on drivers of closures and whether remediation efforts are sustainable.

How Much Does It Cost to Open a Moe's Southwest Grill Franchise?

Opening a Moe's Southwest Grill franchise requires a total initial investment of $869,725 to $2,390,950, according to the 2025 Franchise Disclosure Document. This range covers the franchise fee, real estate, equipment, training, and initial working capital needed to launch and operate through the early months.

Minimum Investment

$869,725

Franchise Fee

Real Estate

Equipment & Assets

Reserves

Training

Other

Maximum Investment

$2,390,950

Minimum Investment Breakdown

Franchise Fee$30,500

Real Estate$505,800

Equipment & Assets$248,200

Reserves$25,000

Training$8,100

Other$52,125

Maximum Investment Breakdown

Franchise Fee$30,500

Real Estate$1,664,100

Equipment & Assets$455,700

Reserves$53,000

Training$37,500

Other$150,150

Investment Analysis

This investment analysis is coming soon. Have ideas for other analyses you'd like us to add? Get in touch.

The initial investment amounts shown are estimates only. Actual costs may vary based on location size, business model, and multi-unit ownership arrangements. We recommend reviewing the full Franchise Disclosure Document for complete details.

How Much Do Moe's Southwest Grill Franchise Owners Make?

Moe's Southwest Grill franchise locations reported average gross sales of $1,235,422 and median gross sales of $1,166,787 in 2025, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$1,235,422

Median Gross Sales:

$1,166,787

High Gross Sales:

$3,097,451

Low Gross Sales:

$371,964

Sample Size:

485

Percent Attaining Average:

45.0%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Only franchised Traditional Franchises are reported for FY2024 (no company-owned data), showing an average net sales of 1,235,422, so direct comparison to corporate-owned units is not possible from this Item 19.

Performance Variability Analysis: There is substantial variability across franchised units: median net sales are 1,166,787 while individual unit net sales range from 371,964 to 3,097,451, and quartile averages show wide dispersion between top and bottom performers.

Data Scope and Limitations: The dataset covers 485 eligible Traditional Franchises and excludes non-traditional, co-branded, affiliate-owned, ineligible, and closed units; the figures are self-reported, unaudited, and do not include expense or profit data.

Frequently Asked Questions

Is Moe's Southwest Grill a good franchise to own?

Whether Moe's Southwest Grill is a good franchise depends on your goals, experience, and local market. Key factors from the 2025 FDD: Moe's Southwest Grill operates 596 locations, received a legal risk score of 71/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

Is a Moe's Southwest Grill franchise worth the investment?

The value of a Moe's Southwest Grill franchise investment depends on factors such as location, operator experience, and market demand. The initial investment ranges from $869,725 to $2,390,950. Moe's Southwest Grill disclosed average gross sales of $1,235,422 in 2025. The system reported 5 terminated units in 2025. Franchise investments carry inherent risk, and prospective buyers should conduct thorough due diligence before committing capital.

What is the failure rate of Moe's Southwest Grill franchises?

In the 2025 FDD, Moe's Southwest Grill reported 5 terminated franchises and 0 non-renewals out of 596 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with a Moe's Southwest Grill franchise?

Break-even timelines for Moe's Southwest Grill franchises are not disclosed in the 2025 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Moe's Southwest Grill a franchise or a corporate-owned business?

As of the 2025 FDD, Moe's Southwest Grill operates 591 franchised locations and 5 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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