Can Moes Southwest Grill require franchisees to purchase posters 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 promotional materials. As part of temporary or permanent promotional campaigns established by Moes Southwest Grill, franchisees are expected to participate at their own cost. These campaigns can include limited time offers, gift cards, coupons, loyalty programs, customer relationship management, and other supplemental marketing programs applicable to the entire Moes Southwest Grill system or specific advertising market areas.
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 cost for these promotions and advertising materials can be up to 110% of Moes Southwest Grill's or their affiliates' actual costs and expenses related to the goods purchased. These costs are incurred as the promotional campaigns take place.
This means a franchisee should be prepared to budget for these promotional campaigns, as Moes Southwest Grill has the discretion to implement them and require participation. The franchisee does not have much flexibility in opting out of required campaigns. The cost can fluctuate based on the specific materials needed and the duration/scope of the campaign. Franchisees should inquire about the typical frequency and cost of these campaigns to better forecast their marketing expenses.