How are payments to an Advertising Cooperative determined for Moes Southwest Grill franchisees?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Payments. Your payments to any Advertising Cooperative will be determined by you and those other franchisees and/or us, as the case may be, who are participants in the Advertising Cooperative, as stated in the by-laws of that Advertising Cooperative or membership, dues, participation, or other payment agreements of the Advertising Cooperative. Amounts paid to an Advertising Cooperative will be credited against your Local Marketing Obligation as specified in Section 10.1.E. (Local Marketing Obligation). Any contributions that you make to an Advertising Cooperative shall be additional to your Advertising Contribution as specified in Section 3.2.B. (Advertising Contribution) and your Grand Opening Obligation as specified in Section 10.1.C. (Grand Opening Advertising). If you become delinquent in your dues or other payments to the Advertising Cooperative or fail to abide by any formal agreements or authorized decisions of the Advertising Cooperative, the delinquency or failure will be deemed a failure to participate in the Advertising Cooperative and a material breach of this Agreement.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, Moe's Southwest Grill franchisees may be required to participate in an Advertising Cooperative. These cooperatives consist of other Moe's Southwest Grill businesses and are designated by the franchisor based on factors like Designated Market Area or Area of Dominant Influence. However, if the franchisor collects the entire Local Marketing Obligation from a franchisee, the franchisee will not be required to participate in an Advertising Cooperative. Franchisees are required to enter formal agreements to comply with the advertising cooperative's guidelines.
The amount a Moe's Southwest Grill franchisee pays to the Advertising Cooperative is determined by the franchisee, other participants in the cooperative, and/or the franchisor. The specific details for determining payments are outlined in the cooperative's by-laws or in membership, dues, participation, or other payment agreements. Payments made to the Advertising Cooperative can be credited against the franchisee's Local Marketing Obligation. However, these payments are in addition to the franchisee's Advertising Contribution and Grand Opening Obligation.
Failure to pay dues or abide by the Advertising Cooperative's agreements is considered a breach of the Franchise Agreement. Moe's Southwest Grill may also require Advertising Cooperatives to use approved public relations firms and advertising agencies. All advertising materials must be submitted for written approval before use. The franchisor can suspend or terminate an Advertising Cooperative's program with 30 days' written notice. Franchisees must provide any information requested by Moe's Southwest Grill related to the Advertising Cooperative within 10 days of the request.