Regarding advertising for Moes Southwest Grill, what is prohibited concerning Competitive Beverages in or associated with Covered Outlets?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Except with respect to any Competitive Beverages that are allowed to be served in the Covered Outlets under this Agreement and any Competitive Beverages permitted on Freestyle Dispensers (i) Customer will not depict, advertise, promote or merchandise any Competitive Beverages anywhere in or in association with the Covered Outlets and (ii) Customer will not enter into any agreement or relationship whereby any Competitive Beverages are associated in any advertising or promotional activity of any kind with Customer, the Covered Outlets, or any of the trademarks of Customer. Notwithstanding this Section 7, nothing shall preclude Customer from participating in promotional advertising and marketing with a brand affiliated with Customer through common management, common control and/or common ownership which offers a Competitive Beverages, as long as such promotional advertising and marketing does not depict the Competitive Beverages and the Covered Outlets operate co-branded retail operations bearing the marks of the Customer and the affiliate. Further, Company acknowledges Customer licenses other brands, both affiliated and un-affiliated, to market and sell Customer's branded
Source: Item 22 — Contracts (FDD page 92)
What This Means (2025 FDD)
According to Moe's Southwest Grill's 2025 Franchise Disclosure Document, franchisees are restricted from certain advertising and promotional activities involving competitive beverages within their covered outlets. Specifically, a franchisee cannot depict, advertise, promote, or merchandise any Competitive Beverages anywhere in or in association with the Covered Outlets. Furthermore, franchisees are prohibited from entering into agreements or relationships that associate any Competitive Beverages with the franchisee, the Covered Outlets, or any of the franchisee's trademarks in any advertising or promotional activity.
However, there are exceptions to these restrictions. A Moe's Southwest Grill franchisee is allowed to serve Competitive Beverages in the Covered Outlets under the agreement and any Competitive Beverages permitted on Freestyle Dispensers. Additionally, franchisees can participate in promotional advertising and marketing with a brand affiliated with them through common management, control, or ownership, even if that brand offers a Competitive Beverage, provided the advertising does not depict the Competitive Beverage and the Covered Outlets operate co-branded retail operations.
These stipulations are part of the Coca-Cola Company Moe's Franchisee Participation Agreement, outlining the terms and conditions for beverage sales and marketing within Moe's Southwest Grill locations. Understanding these restrictions and allowances is crucial for franchisees to ensure compliance with the agreement and to avoid potential penalties or conflicts with the franchisor and the Coca-Cola Company.