From whom can a Moes Southwest Grill franchisee be required to purchase items for promotional campaigns?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| 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 may be required or permitted to purchase promotional items from Moes Southwest Grill or its affiliates. These items are necessary for participating in promotional campaigns. Examples of such items 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 Moes Southwest Grill's or its affiliates' actual costs and expenses related to the goods purchased. This means that franchisees could potentially pay a markup of up to 10% above the cost of the materials to Moes Southwest Grill or its affiliates.
Franchisees are required to participate in promotional campaigns, which 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, as well as promotional programs established by the franchisee's Advertising Cooperative. This ensures brand consistency and coordinated marketing efforts across the franchise system.