Moe's Southwest Grill Franchisee Quality Fresca Files for Bankruptcy

Quality Fresca LLC, a major franchisee of Moe's Southwest Grill, filed for Chapter 11 bankruptcy on August 5, 2026. The operator intends to close 16 restaurants across Florida, Georgia, and Virginia, citing declining sales, rising operating costs, and general industry pressures.

The company previously operated 69 restaurants but had already closed 31 locations before the filing. Quality Fresca reported assets between $1 million and $10 million against liabilities ranging from $10 million to $50 million. The company defaulted on its franchise agreements in August 2025.

To sustain operations during the restructuring process, Quality Fresca is seeking $1.6 million in debtor-in-possession financing from its parent company, GR Loanco 1 LLC. Chief Restructuring Officer G. Michael Verdisco noted that while some restaurants remained profitable, others operated at a loss, leaving the company unable to meet its financial obligations.

The bankruptcy filing is limited to Quality Fresca and does not impact the Moe's brand or its parent company, Go To Foods.