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Moe's Southwest Grill Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Moe's Southwest Grill Franchise?
To open a Moe's Southwest Grill franchise, the initial investment ranges from $745,325 to $1,819,050. This includes a franchise fee of $30,500. Additionally, you will need to have cash available between $30,000 and $95,000 and a net worth of $100,000 to $1,000,000. Understanding these financial commitments is crucial for potential franchisees to ensure they are prepared for the investment.
What Are the Ongoing Fees Associated with Moe's Southwest Grill?
Franchisees of Moe's Southwest Grill are subject to ongoing fees that include a royalty fee of 5% of gross sales and a marketing fee of 3%. These fees contribute to the overall operational costs and marketing efforts of the franchise, ensuring brand consistency and support. Being aware of these ongoing financial obligations can help you maintain profitability and plan your budget effectively.
What Is the Average Revenue Potential for a Moe's Southwest Grill Unit?
The average annual revenue for a Moe's Southwest Grill unit is approximately $1,225,863, with a median revenue of $1,158,258. The revenue can vary significantly, with the lowest annual revenue recorded at $433,047 and the highest at $3,067,462. This wide range indicates the potential for profitability, but also highlights the importance of location and management in achieving financial success.
How Quickly Can You Expect to Break Even with a Moe's Southwest Grill Franchise?
Moe's Southwest Grill franchises typically see a breakeven time of around 12 months, with an investment payback period of approximately 19 months. This relatively quick return on investment can be appealing for prospective franchisees, as it suggests the potential for early profitability. However, success will depend on effective management and market conditions.
Moe's Southwest Grill Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Moe's Southwest Grill Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 659 | 637 | 612 |
| Net Change YoY | -22 | -25 | |
| Franchised Units | 658 | 636 | 606 |
| Net Change YoY | -22 | -30 | |
| Corporate Units | 1 | 1 | 6 |
| Net Change YoY | 0 | +5 |
Initial Investment
The initial investment for a Moe's Southwest Grill franchise ranges from $745,325 to $1,819,050. This figure encompasses various costs, including the franchise fee, equipment, real estate, and other startup expenses necessary to launch a successful location. Prospective franchisees should prepare for these financial commitments to ensure proper funding and financial planning.
Franchise Fees
Moe's Southwest Grill charges an initial franchise fee of $30,500. In addition to this upfront cost, franchisees are responsible for ongoing royalty fees of 5% of gross sales and a marketing fee of 3%. These fees contribute to the brand's overall marketing efforts and operational support, ensuring franchisees benefit from a robust brand presence.
Financial Performance
The average annual revenue per Moe's unit is approximately $1,225,863, with a median revenue of $1,158,258. The revenue range varies significantly, with the lowest reported annual revenue at $433,047 and the highest reaching $3,067,462. These figures indicate the potential for profitability, although actual performance can depend on location and management.
Breakeven and Payback
Franchisees can expect to reach breakeven within 12 months of operation. The investment payback period is estimated at 19 months, allowing franchise owners to recoup their initial investment relatively quickly. This timeline is critical for aspiring investors to consider when evaluating the financial viability of the franchise.
Unit Growth
Over recent years, Moe's Southwest Grill has seen fluctuations in its franchised units. In 2021, there were 658 franchised units, which decreased to 636 in 2022, and further to 606 in 2023. Meanwhile, corporate units increased from 1 in 2021 and 2022 to 6 in 2023, indicating a strategic shift in operational focus and growth strategy.
Average Expenses
Franchisees should account for average annual operating expenses totaling around $254,282. Key expenses include rent ($54,000), marketing and advertising ($30,000), and management salaries ($120,000). Understanding these costs is essential for effective financial planning and ensuring profitability in the competitive fast-casual dining market.
Frequently Asked Questions
The initial investment to open a Moe's Southwest Grill franchise ranges from $745,325 to $1,819,050. This includes the initial franchise fee, equipment, and other startup costs.