Besides the Advertising Contribution, what other advertising obligations does a Moes Southwest Grill franchisee have?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Act and the TCPA, and state advertising laws applicable to your Franchised Business.
B. Submission and Review of Proposed Content. Except as otherwise provided in the Manuals and for Advertising and Promotional Content that we furnish to you, you must submit to us for our written approval, before use, copies of all proposed Advertising and Promotional Content that you intend to use or implement. We have the right to approve or disapprove any Advertising and Promotional Content, as well as the media in which intend to use them, in our sole discretion. We reserve the right to require you to discontinue the use of any Advertising and Promotional Content for any reason.
C. Grand Opening Advertising.
- (i) Grand Opening Obligation. You must spend at least the amount specified in Schedule A on grand opening advertising promoting the opening of your Franchised Business within the period beginning 90 days before the Opening Date and ending 90 days after the Opening Date (the "Grand Opening Obligation"). Alternatively, we may, in our sole discretion, require you to pay the Grand Opening Obligation to us or the Ad Fund for us to spend in accordance with a grand opening advertising plan that we designate or approve. The Grand Opening Obligation is in addition to your Advertising Contribution and any local advertising obligations you may have. If you relocate the Franchised Business pursuant to Section 5.5 (Relocation of the Franchised Business), we may require you to comply with the Grand Opening Obligation again.
- (ii) Conducting Grand Opening.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill FDD, franchisees have several advertising obligations beyond the standard Advertising Contribution. These include a Grand Opening Obligation, where a franchisee must spend a specified amount on advertising within 90 days before and after the restaurant's opening. Franchisees are also obligated to fulfill a Local Marketing Obligation, which involves spending a reasonable amount each quarter on local advertising to promote their specific Moes Southwest Grill location.
Moes Southwest Grill franchisees may also be required to participate in Advertising Cooperatives, if established by the franchisor. These cooperatives involve contributing to local, regional, or national advertising efforts alongside other franchisees. Participation necessitates entering formal agreements and adhering to the cooperative's decisions on advertising and marketing. Payments to the Advertising Cooperative can be credited against the Local Marketing Obligation, but are in addition to both the Advertising Contribution and the Grand Opening Obligation.
It's important to note that Moe's Southwest Grill retains significant control over these advertising efforts. The franchisor can mandate participation in promotional campaigns, approve grand opening advertising plans, and even take over the Local Marketing Obligation by requiring the franchisee to pay the funds directly to them for advertising purposes. The franchisor is not obligated to ensure that advertising expenditures benefit each franchisee proportionately to their contributions.