What discretion does Moes Southwest Grill have regarding advertising and promotional programs?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Advertising. We are not obligated to conduct any advertising. We may periodically formulate, develop, produce, and conduct, at our sole discretion, advertising or promotional programs in such form and medium as we determine to be most effective. We may make available to you for you to purchase approved advertising and promotional materials, including signs, posters, collaterals, etc. that we have prepared.
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 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.
From time to time, we or your Advertising Cooperative (if any) may establish temporary or permanent promotional campaigns (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs) applicable to the System as a whole or to specific advertising market areas. These promotional campaigns may also promote, or involve the participation of, restaurants or businesses other than Restaurants, such as restaurants or businesses operated under different brands that are operated or licensed by our affiliates. You are required to participate in these promotional programs at your own cost, including the costs to purchase, lease and install all materials necessary to the promotional campaigns, including counter cards, posters, banners, signs, photographs, give-away items, and gift cards.
Local Advertising, Marketing, and Promotion. Except as otherwise provided in the Manuals, you may use only Advertising and Promotional Content that we have furnished or approved in writing in advance. "Advertising and Promotional Content" includes all advertising, marketing, promotional, customer relationship management, public relations, and other brand-related programs, materials, and content relating to the Restaurant, the Marks, or the Approved Products, including (i) any branded materials (such as business cards, signs, counter cards, banners, posters, displays, window clings, and in-store messaging), (ii) press releases, (iii) printed materials (such as leaflets, direct mail materials, coupons, and published advertisements), (iv) promotional items (such as branded specialty and novelty items, products, and clothing), (v) audio or video advertising (such as radio, television, or podcast ads or online video postings), and (vi) Digital Marketing (as defined below). You must ensure that all Advertising and Promotional Content that you or your agents or representatives develop or implement related to the Restaurant is (a) clear, factual, ethical, and not misleading, (b) complies with all laws, and (c) conforms to our Standards and the advertising and marketing policies that we periodically specify.
Currently, except for Advertising and Promotional Content we furnish to you and certain branded content social media postings, 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 (or to require you to discontinue using) any Advertising and Promotional Content, as well as the media in which intend to use them, in our sole discretion.
Unless we consent otherwise in writing, you may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Proprietary Marks or that relate to the Restaurant. If we do permit you to conduct any Digital Marketing, you must (i) comply with any Standards or content requirements that we establish periodically and must immediately modify or delete any Digital Marketing that we determine, in our sole discretion, is not compliant with such Standards or content requirements, (ii) only use materials that we have approved and must submit any proposed modifications to us for our approval, (iii) not use any Proprietary Mark on any aspect of the Digital Marketing (including in any domain name, address, or account) except as we expressly permit, (iv) include any information that we require, and (v) include only the links that we approve or require.
Grand Opening Advertising. You must spend the Grand Opening Obligation (at least $25,000 and at least $35,000 if your Restaurant is the first to open in a Designated Market Area) in grand opening advertising promoting the opening of your Restaurant during the period beginning 90 days before (including advanced purchases during that period) you open the Restaurant and ending 90 days after you open the Restaurant. 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.
We maintain the right to approve all of an Advertising Cooperative's marketing programs and advertising materials. On 30 days written notice to affected franchisees, we may terminate or suspend an Advertising Cooperative's program or operations.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to the 2025 FDD, Moes Southwest Grill retains significant control over advertising and promotional programs, while franchisees have limited discretion and must adhere to the franchisor's guidelines. Moes Southwest Grill is not obligated to conduct any advertising but may create programs at its sole discretion. Franchisees are required to contribute to an Ad Fund, currently at 3% of Net Sales, which can be increased to 4%. The franchisor has sole authority over the Ad Fund's use, including creative concepts and media placement.
Moes Southwest Grill or its affiliates may establish promotional campaigns, including limited-time offers and loyalty programs, in which franchisees must participate at their own cost. For local advertising, franchisees can only use content furnished or approved by Moes Southwest Grill. Franchisees must submit all proposed advertising content for written approval, ensuring it is clear, factual, and compliant with brand standards.
Furthermore, Moes Southwest Grill maintains control over digital marketing, including websites and social media, and franchisees generally cannot conduct digital marketing using the Proprietary Marks without written consent. Even with consent, franchisees must adhere to the franchisor's standards and approved materials. For grand openings, franchisees must spend at least $25,000 (or $35,000 in certain markets) on advertising, with Moes Southwest Grill having the option to manage these funds and plans. Moes Southwest Grill also retains the right to approve all marketing programs and advertising materials of any Advertising Cooperative, and may terminate or suspend an Advertising Cooperative's program or operations with 30 days' notice.