Do Moes Southwest Grill Restaurants contribute to the Ad Fund in the same manner as franchised Restaurants?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Restaurants will contribute to the Ad Fund in the same manner and in the same amounts as similarly-situated franchised Restaurants. Our other franchisees may not be required to contribute to the Ad Fund, may be required to contribute to the Ad Fund at a different rate than you, or may be required to contribute to a different advertising fund.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to the 2025 FDD, Moes Southwest Grill Restaurants do contribute to the Ad Fund in the same manner and amounts as similarly-situated franchised Restaurants. However, the FDD specifies that other franchisees may not be required to contribute to the Ad Fund, may be required to contribute at a different rate, or may be required to contribute to a different advertising fund.
Currently, franchisees must make a monthly advertising contribution to the Ad Fund in the amount of 3% of net sales. Moes Southwest Grill has the right to increase this amount to 4% of net sales with notice to franchisees. This advertising contribution is in addition to the Local Marketing Obligation and Grand Opening Obligation.
This means that while Moes Southwest Grill-owned restaurants participate in the Ad Fund similarly to franchised locations, the contribution terms can vary across different franchise agreements. A prospective franchisee should clarify the specific advertising contribution requirements applicable to their franchise agreement and understand that these terms can change within the limits outlined in the FDD.