How much does a Moe’s Southwest Grill franchise cost?
The 2026 Moe’s Southwest Grill Franchise Disclosure Document estimates $644,425 to $1,401,650 for one endcap or inline Restaurant, and $644,425 to $1,968,450 for one freestanding Restaurant. The total covers the Initial Franchise Fee, construction and build-out, equipment, signage, the Computer System, opening inventory, training-related expenses, Grand Opening Marketing, and $25,000 to $53,000 of Additional Funds for pre-opening expenses and the first three months of operation.
This is the full 2026 FDD span across the quantified traditional formats. Endcap and inline Restaurants have a lower high end of $1,401,650; the $1,968,450 high applies to a freestanding Restaurant where the franchisee may bear ground-up building and sitework costs. Source: 2026 FDD, Item 7, pages 33–39.
Key cost figures
The freestanding high end is $566,800 higher than the endcap/inline high end. That is a derived calculation from compatible Item 7 totals, not a separate franchisor estimate. The difference is primarily tied to the wider freestanding construction range.
Why is the freestanding range so much wider?
The 2026 FDD uses the same $644,425 low estimate for both quantified format groups, but the maximum rises sharply when a freestanding project includes the building shell and sitework. Item 7 estimates Construction and Build Out Costs at $259,700 to $573,200 for inline and endcap Restaurants, compared with $259,700 to $1,140,000 for freestanding Restaurants.
The shaded band shows the disclosed low-to-high range on a $0 to $2.0 million scale.
The construction low estimate assumes a $72,000 tenant improvement allowance, while the high estimate assumes no allowance. For a freestanding site, the low estimate also assumes the developer supplies sitework beginning five feet outside the building walls; the high estimate assumes the franchisee handles both building construction and sitework. Source: 2026 FDD, Item 7, pages 35–36.
Which Moe’s formats have a quantified Item 7 range?
The official franchise page describes freestanding buildings, in-line sites, drive-thru locations, food courts, travel hubs, and colleges and universities. The 2026 FDD, however, gives separate total ranges only for endcap/inline and freestanding Restaurants.
Format descriptions: official Moe’s unit-format information. Do not apply a traditional Restaurant total to a food court, travel hub, college, university, or other nontraditional venue without a format-specific current disclosure.
What is included in the initial investment?
Item 7 includes the capital needed to secure and build the premises, install the required equipment and technology, prepare the Restaurant for opening, and fund the initial operating period. The line items below preserve the 2026 FDD ranges rather than converting them into an average or “typical” budget.
Premises, design and construction
| Item 7 expenditure | Disclosed range | Payment timing | FDD page |
|---|---|---|---|
| Construction and Build Out Costs — Inline and Endcap | $259,700–$573,200 | As incurred; as arranged | 34–36 |
| Construction and Build Out Costs — Freestanding | $259,700–$1,140,000 | As incurred; as arranged | 34–36 |
| Permitting | $2,300–$17,500 | Before opening | 34, 36 |
| Architect/Engineer | $9,800–$25,000 | Before opening | 34, 36 |
| Rent | $4,500–$20,000 | Monthly; one month included | 34, 36–37 |
| Security Deposits | $1,500–$8,000 | As incurred | 34, 37 |
The Security Deposits estimate covers utility deposits and does not include a lease security deposit. If the franchisee purchases real estate instead of leasing, the FDD does not estimate the purchase price or required down payment.
Equipment, furnishings, signage and technology
| Item 7 expenditure | Disclosed range | Payment timing | FDD page |
|---|---|---|---|
| Equipment Package | $168,000–$285,300 | Before opening | 34–35 |
| Millwork | $21,000–$61,800 | Before opening | 34, 35 |
| Furniture | $15,000–$30,100 | Before opening | 34, 35 |
| Menu Board, Graphics and Interior Signage | $7,500–$10,100 | Before opening | 34, 35 |
| Exterior Signage | $13,900–$35,000 | Before opening | 34, 35 |
| Computer System | $13,000–$50,100 | Before opening | 34, 36 |
| Smallwares | $9,800–$22,000 | Before opening | 34, 36 |
| TV/Music | $2,400–$5,000 | Before opening | 34, 36 |
This chart compares only the maximum values published for compatible 2026 Item 7 categories. It does not imply that every category reaches its maximum in the same project.
Opening preparation and initial operating funds
| Item 7 expenditure | Disclosed range | What the estimate covers | FDD page |
|---|---|---|---|
| Grand Opening Marketing | $25,000–$35,000 | Required campaign around opening | 34, 37 |
| Legal and Accounting Fees | $3,500–$50,000 | FDD/agreement review, entity formation, lease work | 34, 37 |
| Insurance | $1,425–$7,550 | First-year premiums based on minimum requirements | 34, 37 |
| Misc. Opening Costs/Office Supplies | $2,500–$5,000 | Licenses, utility costs, supplies, employee training | 34, 37 |
| Management Training Program Fee | $0–$7,500 | Fee can apply to the third and later Restaurants | 34, 37–38 |
| Travel and Living Expenses During Training | $8,100–$11,700 | Required trainees; wages are the franchisee’s responsibility | 34, 38 |
| On-Site Training Fee | $0–$18,300 | Can apply to the fourth and later Restaurants | 34, 38 |
| Opening Inventory | $15,000–$35,000 | Food and paper products | 34, 38 |
| Additional Funds — 3 Months | $25,000–$53,000 | Pre-opening and first three months of operation | 34, 38–39 |
When is the money paid?
The capital is not paid as one check. The Initial Franchise Fee is due at signing, while most premises, equipment and opening costs are paid to landlords, contractors, government agencies and vendors as the project advances. The Additional Funds line is then used across the pre-opening period and the first three operating months.
- At Franchise Agreement signingThe standard $35,500 Initial Franchise Fee is paid to Moe’s Franchisor SPV LLC. A qualifying veteran or Armed Forces member pays a reduced $20,000 Initial Franchise Fee. Under a Multi-Unit Addendum, all Initial Franchise Fees for the committed Restaurants may be due at signing and are not refunded if development deadlines are missed. Source: Item 5, pages 20–21.
- During site, design and constructionRent, deposits, architect and engineer costs, permitting, build-out invoices and any extra plan-review or repeat inspection fees arise as the premises moves toward opening. Source: Items 5 and 7, pages 21 and 34–37.
- Before openingThe franchisee pays for the Equipment Package, millwork, furniture, signage, Computer System, smallwares, insurance, training travel, opening inventory and other opening costs. The first POS software or hardware-as-a-service payment is also collected before opening. Source: Items 5 and 7, pages 21–22 and 34–38.
- From 90 days before through 90 days after openingGrand Opening Marketing must total at least $25,000, or $35,000 when the Restaurant is the first in a Designated Market Area. Moe’s may require payment to the franchisor or Ad Fund instead of direct vendor spending. Source: Item 5, page 22; Item 7, page 37.
- Pre-opening through the first three monthsThe $25,000 to $53,000 Additional Funds allowance covers categories such as payroll, payroll taxes, rent, inventory, Royalty Fees, Advertising Contributions, deposits, licenses and miscellaneous expenses. It is already included in Total Initial Investment and must not be added a second time. Source: Item 7, pages 38–39.
Which fees continue after the Restaurant opens?
The largest continuing percentage obligations are the Royalty Fee, Advertising Contribution and Local Marketing Obligation. Technology, ordering, loyalty, training and supply-chain charges add fixed, transaction-based or usage-based costs. The 2026 FDD defines these as separate obligations; they should not be converted into annual dollars without the Restaurant’s actual fee bases.
| Continuing obligation | Amount or basis | When due | FDD page |
|---|---|---|---|
| Royalty Fee | 5% of Net Sales | Weekly Payment Due Date | 22 |
| Advertising Contribution | Currently 3% of Net Sales; may increase to 4% | Weekly Payment Due Date | 22 |
| Local Marketing Obligation | At least 1% of Net Sales each calendar quarter | Each calendar quarter | 22–23 |
| Advertising Cooperative Contribution | Amount set by the applicable cooperative | Weekly Payment Due Date | 22 |
- POS System license/lease
- $159–$454 per month under the CapEx Program, or $332–$902 per month under the HaaS Program.
- POS System support
- $125–$250 per month.
- Learning Management System
- Currently $210 per year.
- Loyalty app
- Currently $66 per month.
- Online ordering
- Currently $111 per month, plus 0.04% per transaction and possible service-based charges.
- Ordering Support Fee
- Currently 3% of the pre-tax transaction amount for each transaction processed through the online ordering system.
- Gift card processing
- $4.50 per Restaurant per month, plus a vendor retention of 7.75% or 12% on certain gift cards purchased from retailers outside a Restaurant.
- Supply Chain Fee
- Currently $0.61–$0.91 per case purchased through certain Appointed Distributors.
Sources: 2026 FDD, Item 6, pages 25–30. The applicable payee may be Moe’s Franchisor SPV LLC, an affiliate, an Approved Supplier or another designated vendor, depending on the fee.
“Net Sales” is broader than cash received after delivery-platform commissions. The definition generally includes ancillary delivery or service charges and does not deduct third-party commissions, discounts, credits or coupons from a delivery or catering platform. Source: 2026 FDD, Item 6 notes, pages 32–33.
Which costs arise only in certain circumstances?
Moe’s has several event-triggered fees that do not belong in every opening budget but can become material during expansion, transfer, relocation, renewal, remodeling or noncompliance. The trigger matters as much as the amount.
- Extra plan reviews or construction inspections: $2,500 for each additional modified drawing set after the included reviews, and $2,500 for a second or later on-site construction inspection. Item 5, page 21.
- Additional-unit training: currently $7,500 for the Management Training Program for a third or later Restaurant; on-site assistance for a fourth or later Restaurant is currently $500 per trainer per day plus travel and living expenses, with the FDD describing a typical charge of about $16,650 to $18,300. Item 5, pages 21–22.
- Renewal: 20% of the then-current Initial Franchise Fee, due before the renewal Franchise Agreement is signed. Item 6, page 26.
- Transfer: 50% of the then-current Initial Franchise Fee for a Control Transfer; 10% for a related-party or non-Control Transfer, due at closing. Item 6, page 26.
- Relocation: 10% of the then-current Initial Franchise Fee, plus $1,500 for each year the agreement term is extended to match a new lease. Item 6, pages 25–26.
- Refresh and remodel: the Franchise Agreement requires a refresh every five years and a remodel every ten years. The current site-survey/design fee is $1,000 to $10,500, but the physical improvement cost is not fixed in Item 6. Item 6, pages 25–26.
- Development deadline extension: $2,500 per missed Site Approval, Construction Start or Opening Deadline. Item 6, page 31.
- Audit: if an audit finds Net Sales understated by 2% or more, the franchisee reimburses audit costs; the FDD estimates typical audit costs at $1,000 to $4,000. Item 6, page 31.
How much liquid capital and net worth are required?
The current official franchise page lists a $300,000 minimum liquid capital requirement and a $1,000,000 minimum net worth requirement. Those are screening qualifications, not substitutes for the 2026 FDD’s Total Initial Investment. Liquid Capital is money or assets that can be readily deployed; Net Worth measures assets minus liabilities and is not the same as cash available for the project.
These figures were checked July 14, 2026 on the official Moe’s financial requirements page. The sources reviewed do not state a separate minimum for non-borrowed funds.
A buyer at the $300,000 liquid-capital threshold could still face an Item 7 project above $1 million. Confirm the expected equity contribution, lender requirements, landlord allowance, personal-guaranty exposure and contingency reserve before treating the official qualification as the cash needed to open.
Does Moe’s finance the franchise investment?
No. Item 10 says Moe’s does not offer financing for trade fixtures, opening inventory or any other purpose, and does not guarantee a franchisee’s note, lease or other obligation. It may refer a prospect to unaffiliated leasing or financing companies and may use an advisor to help franchisees seek financing, but approval and terms remain dependent on the lender and the borrower.
The FDD also states that the franchise system participates in the SBA Franchise Directory. Directory placement is not lender approval, a loan commitment or an endorsement of the franchise. Source: 2026 FDD, Item 10, pages 44–45.
What does the official range not fully resolve?
The Item 7 totals are estimates for one Restaurant, not a fixed construction contract. Several buyer-specific obligations remain outside the published range or can move materially within it.
- Real estate purchase price or down payment: the FDD cannot estimate these if the franchisee buys rather than leases the premises.
- Lease security deposit: the Security Deposits line covers utilities, not a landlord’s lease deposit.
- Delivery or catering vehicle: not included in the Equipment Package. If required, the FDD estimates approximately $25,000 to $35,000 to purchase a branded catering vehicle, or $500 to $700 per month to lease one.
- Extra training: additional trainees, repeat training, separate sessions and wages during training can add costs beyond the Item 7 allowance.
- Expensive markets and unusual sites: permitting, labor, materials, rent, insurance and site conditions can exceed the published range.
- Future system changes: equipment, technology, supplier, insurance, refresh and remodel requirements can change during the Franchise Agreement term.
What should a prospective franchisee verify before committing capital?
The central decision is not whether the Initial Franchise Fee is affordable; it is whether the buyer can fund the correct format’s complete Item 7 range, absorb the site-specific variables and carry the recurring fee structure after opening.
- Match the proposed site to the correct quantified format: endcap/inline or freestanding. Obtain a separate current estimate for a nontraditional venue.
- Confirm which party pays for the building shell, parking, lighting and sitework, and document any tenant improvement allowance in the lease.
- Reconcile contractor bids, equipment quotes, signage, Computer System configuration and opening inventory to the Item 7 categories without double-counting Additional Funds.
- Model the actual cash dates: Franchise Agreement signing, deposits, construction draws, pre-opening purchases, Grand Opening Marketing and the first three operating months.
- Test financing against the $300,000 Liquid Capital and $1,000,000 Net Worth qualifications, recognizing that neither figure is the Total Initial Investment.
- Review the current FDD and Franchise Agreement for state addenda, personal guarantees, renewal, transfer, relocation, technology, supplier and refresh/remodel obligations. The FTC Franchise Rule provides the federal disclosure framework.
The verified 2026 starting point is $644,425 to $1,401,650 for an endcap or inline Restaurant and $644,425 to $1,968,450 for a freestanding Restaurant. Construction responsibility is the largest format-specific source of variation; the Initial Franchise Fee, financial qualifications and continuing percentage fees answer different capital questions and should remain separate.
Corporate context: Moe’s Franchisor SPV LLC is the legal franchisor and an indirect wholly owned subsidiary of GoTo Foods LLC. See official GoTo Foods company information and the official Moe’s Southwest Grill website. FDD source: 2026 FDD, Item 1, pages 1–3.
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