What is the current monthly Advertising Contribution required for Moes Southwest Grill franchisees?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Ad Fund. We will allocate your Advertising Contributions to a fund for the advertising and promotion of the Restaurants, the Proprietary Marks, and the System (the "Ad Fund"). Currently, you must make a monthly Advertising Contribution to the Ad Fund in the amount of 3% of Net Sales. We may, however, increase the Advertising Contribution up to 4% of Net Sales at any time by notice to franchisees. Your Advertising Contribution is in addition to your Local Marketing Obligation and your Grand Opening Obligation.
We currently do not, and are not required to, maintain the Ad Fund, Advertising Contribution you paid, or income earned from contributions to the Ad Fund in a separate 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.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are currently required to make a monthly advertising contribution to the Ad Fund. This contribution is 3% of Net Sales. However, Moe's Southwest Grill retains the right to increase this contribution up to 4% of Net Sales with notice to franchisees.
This advertising contribution is in addition to the franchisee's Local Marketing Obligation and Grand Opening Obligation, meaning franchisees must budget for all three expenses. The Ad Fund is used for advertising and promotion of the restaurants, proprietary marks, and the Moe's Southwest Grill system.
It's important to note that Moe's Southwest Grill does not currently maintain the Ad Fund in a separate account. Also, while company-owned restaurants contribute to the Ad Fund in the same manner as franchised restaurants, other franchisees may have different contribution rates or may contribute to a different advertising fund. This means that advertising costs can potentially increase up to 4% with proper notice from the franchisor.