What is the procedure for Moes Southwest Grill to change the Local Marketing Obligation?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
We may change the Local Marketing Obligation, provided that we must give you at least 60 days' written notice of the change. Your Local Marketing Obligation will be in addition to amounts you must pay or spend under Section 3.2.B (Advertising Contribution) and for the Grand Opening Obligation under Section 10.1.C. (Grand Opening Advertising). You will be responsible for determining the amount of advertising funds you spend for individual local market advertising, subject to the Local Marketing Obligation (if any) and our approval of your annual local marketing plan, if applicable.
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, Moe's Southwest Grill may change the Local Marketing Obligation, provided they give the franchisee at least 60 days' written notice of the change. The Local Marketing Obligation is the minimum amount a franchisee must spend each calendar quarter for local market advertising, as specified in Schedule A. This obligation is in addition to advertising contributions and grand opening advertising expenses.
This means that Moe's Southwest Grill retains the right to adjust the required spending on local marketing, but they must provide franchisees with a heads-up of at least two months before the change takes effect. This allows franchisees time to adjust their marketing plans and budgets accordingly. The Local Marketing Obligation is separate from other advertising fees, so franchisees need to factor in all these costs when planning their overall advertising strategy.
It is important for prospective franchisees to carefully review Schedule A of the Franchise Agreement to understand the initial Local Marketing Obligation and to factor in potential changes to this obligation when assessing the financial feasibility of the franchise. Franchisees should also maintain open communication with Moe's Southwest Grill to stay informed about any upcoming changes to the Local Marketing Obligation and to understand the rationale behind those changes.