Can other Moes Southwest Grill franchisees contribute to the Ad Fund at a different rate?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the 2025 Moes Southwest Grill Franchise Disclosure Document, other franchisees may be required to contribute to the Ad Fund at a different rate than a new franchisee. Currently, franchisees must make a monthly advertising contribution of 3% of net sales, but Moes Southwest Grill can increase this to 4% with notice. This contribution is in addition to local marketing and grand opening obligations.
The FDD specifies that Moes Southwest Grill Restaurants will contribute to the Ad Fund in the same manner and amounts as similarly situated franchised Restaurants. However, the document also states that other franchisees may not be required to contribute to the Ad Fund, may contribute at a different rate, or may be required to contribute to a different advertising fund altogether.
This means that the amount a franchisee contributes to the Ad Fund can vary. A prospective franchisee should inquire about the specific factors that determine advertising contribution rates to understand their potential obligations and how they compare to other franchisees within the Moes Southwest Grill system. Understanding these variations is crucial for accurate financial planning and assessing the overall value of the franchise opportunity.