Can the Ad Fund be used for quality assurance programs 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 Moes Southwest Grill's 2025 Franchise Disclosure Document, the Ad Fund can be used for quality assurance programs. Specifically, the Ad Fund may cover the costs of administering, preparing, and conducting national, local, or regional advertising, promotional, or brand-building programs. These programs can include quality assurance and food safety programs, as well as mystery shop and shopper programs.
This means that a portion of the advertising fees paid by Moes Southwest Grill franchisees could be allocated to ensuring the quality and safety standards of the franchise system are maintained. This can be beneficial for franchisees as it helps protect the brand's reputation and ensures consistent customer experiences across all locations.
It is important to note that Moes Southwest Grill has sole authority over the Ad Fund, including how the money is spent and allocated. While the Ad Fund can be used for quality assurance, there is no guarantee of a specific amount being spent on these programs. The franchisor also states that they are not required to have an independent audit of the Ad Fund completed, but they will provide an annual summary of the expenditures of the Ad Fund upon reasonable request.