Is a Moes Southwest Grill franchisee required to participate in 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. |
| Insufficient Funds Fee | Up to 110% of our or our affiliates' actual costs and expenses. | On invoice | If we draft money from your account under our electronic funds transfer ("EFT") |
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. These campaigns are established by Moes Southwest Grill and may include limited-time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs. These campaigns may apply to the entire Moes Southwest Grill system or specific advertising market areas. Franchisees are responsible for covering the costs associated with participating in these promotional campaigns.
To participate in these campaigns, Moes Southwest Grill may require or permit franchisees to purchase necessary items from them or their affiliates. These items can include counter cards, posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. The cost for these promotional and advertising materials can be up to 110% of the actual costs and expenses incurred by Moes Southwest Grill or its affiliates.
In addition to the promotional campaigns, franchisees are also obligated to spend a minimum amount on local market advertising, which is no less than 1% of Net Sales. If a franchisee fails to meet this minimum advertising expenditure, Moes Southwest Grill has the right to spend the money on the franchisee's behalf, and the franchisee must reimburse them for these expenses. Moes Southwest Grill also has the option to collect the Local Marketing Obligation and use it for various advertising purposes, including contributing it to the Ad Fund, conducting national, regional, or local advertising, spending it on local advertising, or contributing it to the franchisee's Advertising Cooperative.