factual

Can the Ad Fund be used for manager/employee recognition programs at Moes Southwest Grill?

Moes_Southwest_Grill Franchise · 2025 FDD

Answer 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. 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; preparing advertising and promotional materials; Digital Marketing (as defined below); working with public relations firms, advertising agencies, advertising placement services, and creative talent; reimbursing franchisee advisory council meeting expenses; developing and maintaining, and paying third parties for the development and maintenance of, internet sites, applications, and other equipment and technologies related to 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 manager/employee recognition programs. Moe's Southwest Grill may use the Ad Fund to cover the costs of various advertising, promotional, and brand-building initiatives. These initiatives can be conducted at the national, local, or regional level.

Specifically, the Ad Fund can be used for activities that directly or indirectly promote the Moe's Southwest Grill system, its franchisees, and/or increase system sales. This includes manager/employee recognition programs, along with other programs like limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, guest response programs, quality assurance and food safety programs, and mystery shopper programs.

The franchisor has sole authority over the Ad Fund, including the discretion to determine the creative concepts, materials, media, placement, and allocation of advertising. While Moe's Southwest Grill intends for the Ad Fund to be perpetual, it may terminate the fund after all contributions have been spent for the described purposes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.