Can the Ad Fund be used for social media account administration 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. 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 Moes Southwest Grill's 2025 Franchise Disclosure Document, the Ad Fund can be used for social media account administration. Specifically, the Ad Fund may cover the costs of administering national, local, or regional advertising, promotional, or brand-building programs. These programs can include social media account administration and promotion.
This means that a portion of the funds collected for advertising can be allocated to managing and promoting Moes Southwest Grill's social media presence. This could involve hiring personnel or agencies to create content, manage accounts, and run social media advertising campaigns. For a franchisee, this indicates that some of their advertising contributions will go towards building the brand's online presence and engaging with customers through social media channels.
Moes Southwest Grill retains 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. The advertising and promotions that Moes Southwest Grill conducts are intended to maximize general public recognition and patronage of the System generally in the manner that they determine to be most effective. They reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate.