What are some examples of items a Moes Southwest Grill franchisee might be required to purchase for promotional campaigns?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| than 1% of Net Sales on local market advertising. | See Item 11 for what will count towards meeting your obligation. If you fail to make the minimum advertising expenditures, we may do so on your behalf and you must reimburse us for our expenses. We may also elect to collect all or a portion of the Local Marketing Obligation from you and (i) contribute it to the Ad Fund, (ii) conduct national, regional, or local advertising, (iii) spend it on local advertising, or (iv) contribute it to your Advertising Cooperative. | ||
| Promotions and Advertising Materials | Up to 110% of our or our affiliates' actual costs and expenses related to the goods you purchase from us or them. | As incurred | You will participate at your own cost in temporary or permanent promotional campaigns that we establish (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs), which may be applicable to the System as a whole or to specific advertising market areas, and promotional programs your Advertising Cooperative establishes. We may require or permit you to purchase items from us or our affiliates necessary to participate in such campaigns, such as counter cards posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, franchisees are required to participate in both temporary and permanent promotional campaigns established by the franchisor or their Advertising Cooperative. These campaigns may include limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs applicable to the entire Moes Southwest Grill system or specific advertising market areas.
To participate in these campaigns, Moes Southwest Grill may require or permit franchisees to purchase necessary items from them or their affiliates. Examples of such items include counter cards, posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. The cost for these promotions and advertising materials can be up to 110% of the actual costs and expenses incurred by Moes Southwest Grill or its affiliates.
This means a franchisee needs to budget for these promotional expenses, understanding that participation in these campaigns is mandatory and that the costs can fluctuate. It is important for prospective franchisees to discuss with Moes Southwest Grill the typical range and frequency of these promotional campaigns to better estimate these costs. Franchisees should also inquire about the level of input they have in the selection and implementation of these campaigns through the Advertising Cooperative.