Who has the authority to direct advertising programs and promotions for Moes Southwest Grill?

According to the 2025 FDD, Moes Southwest Grill retains sole authority to direct all advertising programs and promotions. This includes control over creative concepts, materials, media, and the allocation of advertising funds. Moes Southwest Grill also reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales they deem appropriate. This means franchisees have limited input into the advertising strategies and must adhere to the franchisor's decisions.

Moes Southwest Grill allocates advertising contributions to a fund dedicated to promoting the restaurants, proprietary marks, and the overall system. Franchisees are currently required to contribute 3% of net sales monthly to this fund, and this contribution can be increased up to 4% of net sales with notice. These contributions are in addition to local marketing obligations and grand opening obligations, ensuring a consistent revenue stream for the Ad Fund. The franchisor is not obligated to maintain the Ad Fund separately from other monies.

While franchisees are required to participate in promotional programs, they must bear the costs of materials and installation. Additionally, franchisees must obtain written approval from Moes Southwest Grill for any local advertising and promotional content they intend to use, ensuring brand consistency. Moes Southwest Grill has the right to approve or disapprove any advertising content at its sole discretion. This centralized control over advertising and promotions allows Moes Southwest Grill to maintain a unified brand image and marketing strategy across all locations, but it also limits the franchisee's autonomy in local marketing efforts.

Moes Southwest Grill or its affiliates have the sole right to control all aspects of any Digital Marketing, including those related to a franchisee's Restaurant. This includes websites, social media accounts, applications, and other means of digital advertising. The advertising and promotions conducted by Moes Southwest Grill are intended to maximize general public recognition and patronage of the System generally in the manner that they determine to be most effective. Moes Southwest Grill is not obligated to make expenditures from the Ad Fund that are equivalent or proportionate to a franchisee's contributions, ensure that a franchisee benefits directly or proportionately in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates a franchisee's area.