How to Finance a Moe’s Southwest Grill Franchise: Costs and SBA
By Anthony Cornella
A Moe’s Southwest Grill franchise loan can fund anything from an in-line shopping center build-out to a freestanding restaurant with a drive-thru, plus the kitchen, technology, grand opening marketing and working capital. With a 2026 disclosure document, published capital requirements and an SBA Franchise Directory listing, Moe’s gives borrowers and lenders a clear starting point for structuring a deal.
This article explains what Moe’s Southwest Grill’s 2026 Franchise Disclosure Document (FDD) and franchise development materials say about fees, investment, owner requirements and reinvestment, what the brand’s SBA directory note about real estate purchase options means, and how lenders evaluate a fast-casual Mexican restaurant deal.
US Professional Funding is not affiliated with, sponsored by or endorsed by Moe’s Southwest Grill; the name is used only to describe the business. Figures from the franchisor’s disclosure document and website can change, loan programs and terms vary by lender and borrower, and every loan is subject to review and approval. Nothing here is legal, tax or investment advice. Review the current FDD and franchise agreement with a qualified franchise attorney and accountant before you sign.
Moe’s Southwest Grill Franchise Loan at a Glance
- Franchisor: Moe’s Franchisor SPV LLC, based in Atlanta, Georgia, according to the FDD issued March 27, 2026.
- Initial franchise fee: $35,500, or $20,000 for qualifying veterans and members of the Armed Forces.
- Royalty: 5% of net sales, paid weekly.
- Advertising contribution: currently 3% of net sales, which may increase to as much as 4%.
- Local marketing: at least 1% of net sales each calendar quarter.
- Estimated initial investment: $644,425 to $1,968,450, including $35,659 to $104,502 paid to the franchisor or its affiliates.
- Financial requirements: minimum liquid capital of $300,000 and minimum net worth of $1,000,000, per the franchisor’s development website.
- System size: 563 franchised restaurants and five affiliate-owned restaurants in the United States as of December 31, 2025.
- Reinvestment: a refresh every five years and a remodel every ten years.
- SBA Franchise Directory: listed as Moe’s Southwest Grill (identifier S1120), with a note limiting purchase options on franchisee-owned real estate.
What Is Moe’s Southwest Grill?
Moe’s Southwest Grill is a fast-casual restaurant brand serving southwestern food such as burritos, bowls, tacos, quesadillas and nachos, built to order along a serving line. Franchises have been offered since January 2001, when the franchisor’s predecessors began franchising the brand. The current franchisor entity, based in Atlanta, Georgia, was organized in 2017 and is an indirect subsidiary of a multi-brand restaurant parent company.
System size. According to the 2026 FDD, there were 563 franchised Moe’s restaurants and five affiliate-owned restaurants in the United States as of December 31, 2025. The franchisor’s development website reports more than 550 locations in more than 30 states, with 474 of the franchised restaurants operating in traditional locations as of late December 2025. That makes Moe’s an almost entirely franchised system.
Formats. The franchisor’s development materials list freestanding buildings, in-line storefronts, drive-thrus, food courts, travel hubs and college and university campuses. The FDD’s technology fees also refer to co-branded locations. Each format carries a different cost profile and a different financing structure.
Why lenders view Moe’s the way they do. Lenders like a long-running, mostly franchised system with a current FDD, published capital requirements and an SBA directory listing. They also know that fast casual is a competitive category, that the investment range is wide, and that the brand’s refresh and remodel cycle requires reinvestment over the life of the loan. Underwriting will focus on the operator’s restaurant experience, the specific format and site, and whether the owner can carry the reinvestment schedule.
Moe’s Southwest Grill Franchise Costs
Initial franchise fee. Item 5 of the 2026 FDD sets the initial franchise fee at $35,500. Qualifying veterans and members of the Armed Forces pay $20,000 through the franchisor’s participation in a veterans franchising program. When the franchisor offers multiple franchise agreements at once, it may, at its discretion, reduce the fee for each restaurant.
Grand opening marketing. You must spend at least $25,000 on grand opening advertising, or $35,000 if your restaurant is the first to open in its Designated Market Area. That is a cash requirement at opening, so build it into the loan budget rather than funding it from early sales.
Training costs. Training is provided at no additional charge for the first two restaurants you or your affiliates operate. For the third and later restaurants, the FDD lists a training fee of currently $7,500 per restaurant. On-site trainers, if needed, are currently $500 per day per trainer plus travel and living expenses. The franchisor’s development website describes 15 days of management training for two required trainees.
Plan review and inspections. The FDD lists a $2,500 fee for certain revised plan reviews and $2,500 for a second or later construction inspection. Getting plans right the first time saves money and keeps the construction schedule on track.
Real estate and build-out. The largest variable in a Moe’s budget is the site. An in-line or endcap space in a shopping center involves leasehold improvements, while a freestanding restaurant with a drive-thru may involve site work, a ground lease or land purchase and new construction. The franchisor’s development website describes an estimated investment of $644,000 to $1.4 million for endcap and in-line locations, while the FDD’s full range reaches $1,968,450.
Equipment and technology. The kitchen package, serving line, beverage equipment, point-of-sale hardware and back-office systems are significant parts of the investment and are often financed separately.
Total investment. According to the 2026 FDD, the estimated initial investment ranges from $644,425 to $1,968,450, including $35,659 to $104,502 paid to the franchisor or its affiliates. Item 7 breaks that total into line items; for a restaurant franchise, the categories generally cover:
- The initial franchise fee
- Real estate, rent and security deposits
- Leasehold improvements or construction
- Furniture, fixtures and kitchen equipment
- Signage and décor
- Point-of-sale and computer systems
- Opening inventory and supplies
- Training and travel
- Grand opening advertising
- Licenses, permits, insurance and professional fees
- Additional funds for the initial operating period
Review the Item 7 table in the current FDD for the dollar range of each line, the assumptions behind it and the format it describes. The difference between an in-line build-out and a freestanding drive-thru can account for most of the spread between the low and high ends.
Ongoing Fees and How They Affect Your Loan
Royalty. Moe’s charges a royalty of 5% of net sales, payable weekly.
Advertising contribution. The advertising contribution is currently 3% of net sales and may be increased to as much as 4%.
Local marketing. Each calendar quarter, you must spend at least 1% of net sales on local market advertising. Advertising cooperatives, where they exist, may set additional contributions.
Technology fees. The FDD lists several recurring technology charges. Point-of-sale license and lease fees currently run $159 to $454 per month under one program or $332 to $902 per month under a hardware-as-a-service program. A POS support fee currently runs $125 to $250 per month, the loyalty app fee is currently $66 per month, online ordering is currently $111 per month plus 0.04% per transaction, and the learning management system license is currently $210 per year. Card processing fees are estimated at 2.5% to 5% of transaction amounts.
Transfer and renewal fees. A transfer of control carries a fee of 50% of the then-current initial franchise fee, or 10% for a transfer to a related party or other non-control transfer. Renewal costs 20% of the then-current initial franchise fee.
Refresh and remodel obligations. Moe’s requires a refresh every five years and a remodel every ten years. The franchisor may charge a refresh or remodel site survey and design fee of currently $1,000 to $10,500, depending on scope. The construction itself is a separate, larger cost.
How lenders factor these costs in. Royalty, the advertising contribution and the local marketing minimum together total at least 9% of net sales, and 10% if the advertising contribution rises to its maximum. Add the monthly technology charges and card fees, and the fee load is meaningful. Lenders deduct all of these, plus rent, food, packaging and labor, before measuring debt service coverage. They also look ahead to the five-year refresh, which may fall within the loan term, and expect a reserve or a plan to finance it.
Franchisor Requirements for New Owners
- Liquid capital: a minimum of $300,000, according to the franchisor’s development website.
- Net worth: a minimum of $1,000,000.
- Experience: the franchisor looks for multi-unit restaurant ownership expertise, an energetic approach and strong ties to the local community.
- Training: two required trainees complete management training before opening.
- Grand opening: a minimum grand opening advertising spend of $25,000, or $35,000 for the first restaurant in a market.
The approval process. The franchisor describes a process that moves from an inquiry and introductory call, through learning about the brand and its requirements, to an application and review of the FDD if you qualify. Candidates then talk with existing franchisees and executives and may attend a discovery day or interviews before both sides decide to sign. Start lender conversations during the application stage so your financing plan matches the format and site you intend to pursue.
Ways to Own a Moe’s Southwest Grill
A new traditional restaurant. Most new restaurants are in-line, endcap or freestanding locations. The loan is underwritten on projections, the site and the operator’s experience. Our page on franchise start-up financing explains how lenders approach new units.
Non-traditional locations. Food courts, travel hubs and college campuses often involve smaller footprints, host-controlled leases and different traffic patterns. Lenders look closely at the host agreement, its term and any limits on hours or menu.
Buying an existing Moe’s. With more than 500 franchised restaurants in the system, resales do come to market. A resale gives the lender historical financials to underwrite, but it also brings a transfer fee and possibly a required refresh or remodel. See our guide to buying a franchise resale and our page on franchise restaurant acquisition financing.
Multiple restaurants. The franchisor may offer multiple franchise agreements at the same time, sometimes with a reduced franchise fee per restaurant. Each restaurant typically has its own franchise agreement and is financed on its own schedule.
Financing Options for a Moe’s Southwest Grill Franchise
A Moe’s Southwest Grill franchise loan package often combines several of these tools.
SBA 7(a) loans. Because Moe’s is listed on the SBA Franchise Directory, an SBA 7(a) loan can fund the franchise fee, build-out, equipment, grand opening and working capital, and in some cases real estate, in one loan. The program maximum is currently $5 million, though program rules can change. A 7(a) loan can also fund the purchase of an existing restaurant.
SBA 504 loans. For an owner who wants to buy land and build a freestanding Moe’s with a drive-thru, an SBA 504 loan can finance the real estate and long-lived equipment. A 504 loan is built for owner-occupied property and fixed assets, so it suits operators who want to hold the building rather than lease it. Keep the SBA directory note on purchase options in mind, covered below.
Conventional term loans. Experienced multi-unit operators sometimes prefer a conventional business loan or a development facility that can fund several restaurants. These structures can offer flexibility but typically ask for stronger financials and a track record.
Equipment financing. A Moe’s kitchen depends on flat-top grills, rice and bean cookers, steam wells and hot-holding equipment for the serving line, refrigerated prep and make tables, walk-in coolers and freezers, a hood and ventilation system and beverage equipment. Financing that package separately can preserve cash for the build-out and reserves. Learn more about restaurant equipment financing and leasing.
Working capital and lines of credit. Grand opening spending, training payroll and the first months of operation all hit before sales stabilize. Campus locations may also see sales drop when classes are out. A working capital reserve or line of credit can cover those swings. See our restaurant working capital options.
Remodel financing. With a refresh every five years and a remodel every ten, existing owners will need capital for reinvestment. Our article on financing a franchise remodel explains how lenders approach these projects.
Seller financing on resales. When buying an existing restaurant, a seller may agree to carry part of the price. A seller note is typically subordinate to the senior loan, and SBA and other programs may limit how it is structured and when it can be repaid.
SBA Loans for Moe’s Southwest Grill Franchisees
SBA franchise lending depends on the SBA Franchise Directory, a list of brands whose franchise documents have been reviewed for SBA eligibility. SBA lenders generally require a brand to appear on the directory before they can make an SBA-guaranteed loan to one of its franchisees. A listing does not approve any borrower; it clears the franchise relationship for SBA review.
Moe’s listing. Moe’s Southwest Grill appears on the SBA Franchise Directory under identifier S1120. That means SBA 7(a) and 504 loans are available to qualified borrowers, subject to underwriting.
What the directory note means. The listing includes this note: the franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate and taken as collateral for the SBA loan. Some franchise agreements give the franchisor the right to buy the restaurant property in certain situations, such as termination or expiration. If you or a related real estate company own the land or building and pledge it to secure an SBA loan, the franchisor cannot exercise that purchase right on the property. In plain English, the lender’s lien on the real estate is protected. Raise this early with your lender and franchise attorney if you plan to own the property.
Veterans. Qualifying veterans and service members pay a $20,000 franchise fee instead of $35,500. Our article on veteran franchise financing covers how veterans can approach the financing side.
SBA application tips. Assemble the FDD, the franchise agreement, the site package or lease, the construction budget and contractor bids, the equipment list, personal financial statements, tax returns, resumes and projections for the specific site. If you plan to own the real estate in a separate company, explain that structure up front. Our SBA loan calculator can help with early payment estimates, which are for planning only and are not an offer or approval.
How Lenders Evaluate a Moe’s Southwest Grill Deal
Personal credit and financial history. Lenders review credit reports, tax returns and personal financial statements for each significant owner and usually require personal guarantees.
Net worth and liquidity. The franchisor’s $300,000 liquid capital and $1,000,000 net worth minimums are a floor. Lenders look at how much cash remains after the equity injection and the grand opening spend, and whether the owner can fund future refreshes.
Restaurant experience. Moe’s says it looks for multi-unit restaurant ownership expertise. Lenders will want to see that the owner or a key manager has run restaurants with similar volumes, labor needs and food cost discipline.
Business plan and projections. Projections for a Moe’s Southwest Grill franchise loan should reflect the specific format and trade area, the 5% royalty, the advertising contribution with a 4% scenario, the 1% local marketing minimum, technology fees, rent or mortgage payments, food and packaging costs, labor and a ramp-up period. The 2026 FDD includes financial performance representations in Item 19; use them as a reference point with your accountant, not as a promise of results for any one restaurant.
The FDD and franchise agreement. Lenders review the franchise term, renewal conditions and the 20% renewal fee, transfer rules, default provisions and the refresh and remodel schedule. The FDD’s cover page notes that disputes are resolved by arbitration or litigation only in Georgia, which buyers outside that state should discuss with their attorney.
Site, lease or real estate. For a leased site, lenders want a lease term that matches the loan, renewal options and reasonable escalations. For an owned site, they order an appraisal and environmental review and apply the SBA directory note on purchase options.
Historical financials for resales. For an existing restaurant, expect to provide several years of profit and loss statements, sales reports and tax returns, which lenders compare against bank deposits, along with any refresh or remodel the franchisor requires at transfer.
Refresh, Remodel and Equipment Planning
Moe’s reinvestment cycle is one of the most important financing details for a long-term owner. A refresh every five years and a remodel every ten years means a long-term loan may span at least one refresh, and a buyer of an older restaurant may face a remodel soon after closing.
Budget for reinvestment. Ask the franchisor what the next refresh or remodel will involve for your restaurant and when it is due. The site survey and design fee of currently $1,000 to $10,500 is only the start; construction, new finishes and equipment updates can cost much more.
Technology updates. POS hardware, online ordering and loyalty tools evolve. The FDD’s two POS programs, one with purchased hardware and one with hardware as a service, have different cash flow effects, so choose the option that fits your budget and loan structure.
Multi-Unit Growth
Moe’s looks for operators with multi-unit restaurant ownership expertise, and it may offer multiple franchise agreements at once, sometimes with a reduced fee per restaurant.
Financing the second and third restaurants. Lenders typically finance each restaurant separately, using the cash flow and track record of open restaurants to support the next loan. Keep clean monthly financial statements for each restaurant, and consider separate entities so lenders can review each location.
Training costs at scale. Training is included for your first two restaurants. From the third restaurant on, the training fee currently runs $7,500 per restaurant, so include it in the budget.
Grand opening at scale. Each new restaurant requires at least $25,000 in grand opening advertising. A developer opening several restaurants should plan that cash for each one.
Real-World Scenarios
A veteran opening a first restaurant. A former service member with restaurant management experience qualifies for the $20,000 franchise fee and signs for an endcap location. An SBA 7(a) loan funds the build-out, equipment, grand opening and working capital, and the borrower’s liquid capital covers the equity injection and reserves.
A multi-unit operator building a drive-thru. An experienced restaurant group buys a pad site and builds a freestanding Moe’s with a drive-thru, holding the real estate in an affiliated company. An SBA 504 loan finances the land and building, and the lender confirms the franchisor cannot exercise a purchase option on the pledged property.
Buying an existing restaurant. A buyer purchases a franchised Moe’s from a retiring owner. The lender underwrites the restaurant’s historical financials and includes funds for any refresh or remodel the franchisor requires in connection with the transfer.
A campus location. An operator opens a Moe’s at a university food court. The lender reviews the host agreement and builds a working capital reserve to cover slower months when classes are out.
Common Mistakes to Avoid
- Budgeting from the low end of the investment range without matching it to your actual format
- Forgetting the $25,000 or $35,000 grand opening requirement
- Ignoring the refresh due in year five when planning debt service
- Underwriting the advertising contribution at 3% without testing the 4% maximum
- Overlooking the monthly technology charges and card fees
- Buying a resale without confirming upcoming refresh or remodel obligations
- Owning the real estate without understanding the SBA directory note on purchase options
For more pitfalls across the industry, read common restaurant loan mistakes.
Next Steps to Finance Your Moe’s Southwest Grill Franchise
Step 1: Confirm you qualify. Make sure you meet the $300,000 liquid capital and $1,000,000 net worth minimums and can show restaurant experience.
Step 2: Review the FDD. Study Items 5, 6, 7, 10, 12, 17, 19 and 20 with a franchise attorney and accountant.
Step 3: Choose your format. Decide between in-line, endcap, freestanding, drive-thru or a non-traditional location, and match your budget to it.
Step 4: Talk with a financing specialist early. Compare SBA 7(a), SBA 504 and conventional options, and plan equipment financing and working capital.
Step 5: Build site-specific projections. Include the full fee load, technology charges, occupancy costs, grand opening spend and a realistic ramp-up.
Step 6: Apply and coordinate approvals. Submit your loan request with the FDD, franchise agreement, site package, construction budget and financial documents, and align closing with the franchisor’s training and opening schedule.
Step 7: Plan for reinvestment. Set aside reserves or a financing plan for the five-year refresh and ten-year remodel.
Moe’s Southwest Grill Franchise Loan FAQs
How much does it cost to open a Moe’s Southwest Grill?
According to the 2026 FDD, the estimated initial investment ranges from $644,425 to $1,968,450. The franchisor’s development website describes $644,000 to $1.4 million for endcap and in-line locations.
What is the Moe’s franchise fee?
The initial franchise fee is $35,500. Qualifying veterans and members of the Armed Forces pay $20,000, and the franchisor may reduce the fee when it offers multiple franchise agreements at once.
What royalty does Moe’s charge?
The royalty is 5% of net sales. The advertising contribution is currently 3% and can rise to 4%, and you must spend at least 1% of net sales on local marketing each quarter.
How much liquid capital do I need for a Moe’s?
The franchisor’s development website lists minimum liquid capital of $300,000 and minimum net worth of $1,000,000.
Is Moe’s Southwest Grill SBA approved?
Moe’s Southwest Grill is listed on the SBA Franchise Directory under identifier S1120. The listing notes that the franchisor may not enforce a purchase option on real estate owned by the franchisee or an affiliate and pledged as collateral for the SBA loan.
Can I finance the equipment separately?
Yes. Grills, steam wells, refrigeration, ventilation and beverage equipment can often be financed or leased separately from the build-out, which can preserve cash for opening.
Does Moe’s offer financing?
Check Item 10 of the current FDD, which discloses whether the franchisor or its affiliates offer any direct or indirect financing. Most owners finance through SBA, conventional and equipment loans.
Can I buy an existing Moe’s Southwest Grill?
Yes, with the franchisor’s approval. A transfer of control carries a fee of 50% of the then-current initial franchise fee, and the buyer may need to complete a refresh or remodel.
How often do I have to remodel?
Moe’s requires a refresh every five years and a remodel every ten years. A site survey and design fee of currently $1,000 to $10,500 may apply, separate from construction costs.
What does it cost to renew a Moe’s franchise?
The renewal fee is 20% of the then-current initial franchise fee. Check Item 17 of the FDD for the length of the term and the renewal conditions.
Does the FDD include financial performance information?
Yes. The 2026 FDD includes financial performance representations in Item 19. Review them with your accountant and use them as a reference point, not a guarantee.
Can I own more than one Moe’s?
Yes. The franchisor may offer multiple franchise agreements at the same time, and it looks for candidates with multi-unit restaurant ownership expertise. Each restaurant is usually financed on its own schedule.
Final Thoughts
Moe’s Southwest Grill combines a long franchising history, a nearly all-franchised system and an SBA directory listing, which gives borrowers several financing paths. A strong Moe’s Southwest Grill franchise loan starts with the right format and site, realistic projections that include the full fee load, enough liquidity to meet the franchisor’s minimums and a plan for the five-year refresh and ten-year remodel.
US Professional Funding helps franchise owners and buyers finance new units, acquisitions, real estate, equipment and working capital for established brands. Learn more about our franchise financing and restaurant financing solutions.
