Can Moes Southwest Grill require franchisees to purchase counter cards for promotional campaigns?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
goods before your Restaurant opens. The initial fees are not refundable.
ITEM 6
OTHER FEES
| | We may, in our sole discretion, | |---|---| | reduce or waive the Grand Opening Obligation if your Restaurant is located in a Captive Audience | | | Location (as defined in Item 12). | |
| Type of Fee1 | Amount | Date Due | Remarks |
|---|---|---|---|
| than 1% of Net Sales on local market advertising. | See Item 11 for what will count towards meeting your obligation. If you fail to make the minimum advertising expenditures, we may do so on your behalf and you must reimburse us for our expenses. We may also elect to collect all or a portion of the Local Marketing Obligation from you and (i) contribute it to the Ad Fund, (ii) conduct national, regional, or local advertising, (iii) spend it on local advertising, or (iv) contribute it to your Advertising Cooperative. | ||
| Promotions and Advertising Materials | Up to 110% of our or our affiliates' actual costs and expenses related to the goods you purchase from us or them. | As incurred | You will participate at your own cost in temporary or permanent promotional campaigns that we establish (e.g., limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs), which may be applicable to the System as a whole or to specific advertising market areas, and promotional programs your Advertising Cooperative establishes. |
Source: Item 6 — Other Fees (FDD pages 30–41)
What This Means (2025 FDD)
According to Moes Southwest Grill's 2025 Franchise Disclosure Document, franchisees are required to participate in promotional campaigns at their own cost. These campaigns can be temporary or permanent and may include limited-time offers, gift cards, coupons, loyalty programs, and other supplemental marketing efforts. These campaigns may apply to the entire Moes Southwest Grill system or specific advertising market areas, as well as promotional programs established by the franchisee's Advertising Cooperative.
Moes Southwest Grill may require or permit franchisees to purchase items necessary to participate in these campaigns from them or their affiliates. These items can include counter cards, posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. The fees for these promotions and advertising materials can be up to 110% of the actual costs and expenses incurred by Moes Southwest Grill or its affiliates related to the goods purchased.
This means that Moes Southwest Grill franchisees may be obligated to purchase promotional materials like counter cards to participate in marketing campaigns. The cost for these materials will be based on the actual expenses incurred by Moes Southwest Grill or its affiliates, with a potential markup of up to 10%. Franchisees should factor in these potential costs when budgeting for ongoing marketing and promotional activities.