Will Moes Southwest Grill provide an annual summary of the expenditures of the Ad Fund?

According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, while Moe's Southwest Grill is not required to have an independent audit of the Ad Fund completed, they will provide franchisees with an annual summary of the Ad Fund's expenditures. However, this is only provided if the franchisee makes a reasonable request for it.

It's important to note that Moe's Southwest Grill does not need to keep the Ad Fund in a separate account, and they are not considered a fiduciary regarding the fund. Any remaining funds at the end of the fiscal year will be carried over into the next fiscal year. Moe's Southwest Grill also has the option to loan money to the Ad Fund and be reimbursed from it.

This arrangement gives Moe's Southwest Grill significant control over the Ad Fund, its usage, and reporting. While an annual summary is available upon request, franchisees do not automatically receive this information and must take the initiative to ask for it. Prospective franchisees should consider the implications of this structure and the level of transparency they desire regarding the Ad Fund's operations.