Can the Ad Fund be used for brand applications for Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use the Ad Fund to meet the costs of administering, preparing, and conducting national, local, or regional advertising, promotional, or brand building programs of any kind, including the cost of (i) preparing and conducting television, radio, magazine, newspaper, and digital advertising campaigns and other public relations activities (including, but not limited to, for purposes of brand reputation management), (ii) employing public relations firms and advertising agencies to assist in these activities, and (iii) conducting other activities that are directly or indirectly designed to promote the System, its franchisees, and/or increase System sales, such as limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials (e.g., cups), up-sell programs, guest response programs, manager/employee recognition programs, quality assurance and food safety programs, mystery shop and shopper programs, brand websites and ordering platforms, brand applications, social media account administration and promotion, and in-store equipment and technologies related to such marketing programs.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the Ad Fund can be used for brand applications. The Ad Fund is used for advertising and promotion of the Restaurants, Proprietary Marks, and the System.
The FDD specifies that the Ad Fund may cover the costs of various advertising, promotional, and brand-building programs. These programs can include television, radio, magazine, newspaper, and digital advertising campaigns, as well as public relations activities for brand reputation management. The Ad Fund can also be used for activities that promote the System, franchisees, and increase sales, such as limited-time menu offerings, crew incentives, franchisee incentive programs, customized materials, up-sell programs, guest response programs, manager/employee recognition programs, quality assurance and food safety programs, mystery shop programs, brand websites and ordering platforms, brand applications, social media account administration and promotion, and in-store equipment and technologies related to such marketing programs.
Moe's Southwest Grill retains sole authority to direct all advertising programs and promotions and uses of the Ad Fund, including creative concepts, materials, and media used. The franchisor also reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate. While franchisees contribute to the Ad Fund, Moe's Southwest Grill is not obligated to spend the Ad Fund in a manner equivalent or proportionate to individual franchisee contributions or to ensure direct or proportionate benefit to any specific franchisee.