Are all Moes Southwest Grill franchisees required to contribute to the Ad Fund at the same rate?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, not all franchisees are required to contribute to the Ad Fund at the same rate. While franchisees currently must make a monthly Advertising Contribution of 3% of Net Sales, Moe's Southwest Grill retains the right to increase this contribution up to 4% of Net Sales with notice.

Importantly, the FDD states that Moe's Southwest Grill's own restaurants will contribute to the Ad Fund in the same manner and amounts as similarly-situated franchised restaurants. However, the document explicitly notes that other franchisees may not be required to contribute to the Ad Fund at all, may contribute at a different rate, or may be required to contribute to a different advertising fund altogether. This creates a situation where some franchisees could have a lower or higher advertising burden than others.

This discrepancy in advertising contributions could impact a franchisee's profitability and competitive positioning. A prospective franchisee should inquire about the specific criteria used to determine Ad Fund contribution rates and whether there are any circumstances that could lead to a different rate being applied to their restaurant. Understanding these factors is crucial for accurately forecasting expenses and assessing the overall financial viability of the franchise.