Is the Advertising Contribution for a Moes Southwest Grill franchise refundable?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
ay us an initial franchise fee as specified in Schedule A (the "Initial Franchise Fee"). When we sign this Agreement, the Initial Franchise Fee is fully earned and nonrefundable. You acknowledge that we have no obligation to refund any portion of the Initial Franchise Fee to you, even if this Agreement is terminated prior to opening the Franchised Business.
3.2 Ongoing Fees.
- A. Royalty Fee. You must pay to us a recurring, non-refundable royalty fee
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, the advertising contribution is non-refundable. Franchisees must pay a recurring advertising contribution, as specified in Schedule A, in addition to the Grand Opening Obligation and Local Marketing Obligation.
This means that once a franchisee pays the advertising contribution to Moe's Southwest Grill, they cannot get it back under any circumstances. This is a standard practice in franchising, as advertising funds are typically used for ongoing marketing efforts that benefit the entire franchise system.
It is important for prospective franchisees to understand that the advertising contribution is separate from other advertising obligations, such as the Grand Opening Obligation and Local Marketing Obligation. Franchisees should carefully review Schedule A of the Franchise Agreement to understand the specific amount and payment schedule for the Advertising Contribution.