Can the Ad Fund be used for guest response programs at Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
nd. We have sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. We reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales we deem appropriate.
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. We may use the Ad Fund to compensate us for the reasonable administrative costs and overhead we incur in activities related to advertising and promotional programs, including new product development; market research;
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to the 2025 FDD, the Ad Fund for Moes Southwest Grill can be used for guest response programs. Moes Southwest Grill may use the Ad Fund to cover the costs of various advertising, promotional, and brand-building initiatives, including guest response programs. These programs are designed to promote the Moes Southwest Grill system, support franchisees, and boost overall sales.
Specifically, the Ad Fund can be used for activities indirectly designed to promote the Moes Southwest Grill system, franchisees, and increase system sales, such as guest response programs. The franchisor has sole authority over the Ad Fund's usage, including the types of programs and creative materials used.
In fiscal year 2024, 4% of the Ad Fund was allocated to guest response programs and menu innovation projects. This shows that Moes Southwest Grill has previously used the Ad Fund for guest response programs. This allocation may change in the future, as Moes Southwest Grill retains the right to modify the allocation of the Ad Fund.