What is the intended outcome of the advertising and promotions conducted by Moes Southwest Grill?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
The advertising and promotions that we conduct are intended to maximize general public recognition and patronage of the System generally in the manner that we determine to be most effective. We reserve the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales we deem appropriate. We will not spend the Ad Fund in a manner that (i) exclusively benefits our licensees that manufacture and sell Approved Products, if any, or (ii) is principally a solicitation for the sale of franchises. We have no obligation to make expenditures from the Ad Fund that are equivalent or proportionate to your contributions, ensure that you benefit directly or proportionately in any amount from the placement of advertising, or ensure that any advertising impacts or penetrates your area.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to the 2025 FDD, the advertising and promotions conducted by Moe's Southwest Grill are intended to maximize general public recognition and patronage of the Moe's Southwest Grill system. Moe's Southwest Grill has sole authority to direct all advertising programs and promotions and uses of the Ad Fund, with sole control over the creative concepts, materials, and media used in the programs, and the placement and allocation of advertising. Moe's Southwest Grill reserves the right to use any media, create any programs, and allocate advertising and promotional expenditures to any regions or locales it deems appropriate.
As a franchisee, you are required to contribute to the Ad Fund, which is currently 3% of Net Sales, and Moe's Southwest Grill may increase this to 4% with notice. The Ad Fund is used for national, local, or regional advertising, promotional, or brand-building programs. These programs can include television, radio, magazine, newspaper, and digital advertising campaigns, as well as public relations activities. The Ad Fund can also cover the costs of employing public relations firms and advertising agencies, and conducting activities designed to promote the Moe's Southwest Grill system, its franchisees, and increase system sales.
It is important to note that Moe's Southwest Grill is not obligated to spend the Ad Fund in a way that directly benefits your specific location or ensures that advertising impacts your area. Moe's Southwest Grill also has the right to establish pricing requirements and requires franchisees to participate in temporary or permanent promotional campaigns. Franchisees are also required to participate in any local, regional, or national cooperative advertising group consisting of other Restaurants that Moe's Southwest Grill specifies.