Can Moes Southwest Grill require franchisees to purchase photographs for promotional campaigns?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. We may require or permit you to purchase items from us or our affiliates necessary to participate in such campaigns, such as counter cards posters, banners, signs, photographs, loyalty program rewards, give-away items, and gift cards. |
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 may be required to purchase photographs as part of promotional campaigns. The FDD states that franchisees will participate at their own cost in promotional campaigns established by Moes Southwest Grill, such as limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs. These campaigns may apply to the entire Moes Southwest Grill system or specific advertising market areas.
Moes Southwest Grill may require or permit franchisees to purchase items needed 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.
This means that a franchisee could be obligated to purchase photographs to support a marketing campaign initiated by Moes Southwest Grill. The cost for these photographs, along with other promotional materials, could be marked up to 110% of Moes Southwest Grill's or its affiliates' expenses. Franchisees should factor in these potential costs when budgeting for ongoing marketing and promotional activities. It is also important to note that franchisees may also be required to participate in promotional programs established by their Advertising Cooperative.