How will Moes Southwest Grill allocate advertising contributions?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
te account from our other money. Our Restaurants will contribute to the Ad Fund in the same manner and in the same amounts as similarly-situated franchised Restaurants. Our other franchisees may not be required to contribute to the Ad Fund, may be required to contribute to the Ad Fund at a different rate than you, or may be required to contribute to a different advertising fund.
We or an affiliate will administer the Ad Fund. 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; 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.
The advertising and promotions that we conduct are intended to maximize general public recognition and patronage of the System generally in the manner that we determine to be most effective. 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 will not spend the Ad Fund in a manner that (i) exclusively benefits our licensees that manufacture and sell Approved Products, if any, or (ii) is principally a solicitation for the sale of franchises. We have no obligation to make expenditures from the Ad Fund that are equivalent or proportionate to your contributions, ensure that you benefit directly or proportionately in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates your area.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Agreement, Moe's Franchisor SPV LLC has sole authority over advertising programs, promotions, and the use of the Ad Fund. This includes complete control over creative concepts, materials, media, and the allocation of advertising. Moe's Southwest Grill reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate.
The Ad Fund can cover various costs related to advertising, promotion, and brand building. These include television, radio, magazine, newspaper, and digital advertising campaigns, public relations, employing public relations firms and advertising agencies, and other activities designed to promote the System, its franchisees, and/or increase System sales. Examples of such activities are limited-time menu offerings, crew incentives, franchisee incentive and/or promotional programs, customized materials, 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.
Moe's Southwest Grill may also use the Ad Fund to cover reasonable administrative costs and overhead related to advertising and promotional programs. This includes new product development, market research, preparing advertising and promotional materials, digital marketing, working with public relations firms, advertising agencies, advertising placement services, and creative talent. The Ad Fund can also be used for reimbursing franchisee advisory council meeting expenses and developing and maintaining websites, applications, and other equipment and technologies related to marketing programs. However, Moe's Southwest Grill will not use the Ad Fund in a way that exclusively benefits its licensees that manufacture and sell products bearing the Marks or that is principally a solicitation for the sale of franchises.
Prospective franchisees should note that Moe's Southwest Grill is not obligated to ensure that advertising expenditures from the Ad Fund are proportionate or equivalent to individual franchisee contributions or that a franchised business will directly benefit from the placement of advertising. Franchisees are required to make all advertising contributions without reduction, regardless of their perceived benefit or the contribution level of other franchisees. This means that while franchisees contribute to the Ad Fund, the actual benefit they receive from advertising efforts may vary, and they cannot withhold contributions based on perceived lack of direct benefit.