Does Moes Southwest Grill have the sole discretion to reduce or waive the Grand Opening Obligation?
Moes_Southwest_Grill Franchise · 2025 FDDAnswer from 2025 FDD Document
dditional on-the-job training at a location that we designate. We also recommend that your Primary Contact or at least one of your Managers attend the opening of another franchisee's Restaurant before you open your first Restaurant. We will work with you to facilitate this experience, if requested, but you will be responsible for all associated costs.
Currently, our Management Training Program consists of the following:
MANAGEMENT TRAINING PROGRAM
| 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). |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 53–68)
What This Means (2025 FDD)
According to the 2025 Moes Southwest Grill Franchise Disclosure Document, Moes Southwest Grill has the sole discretion to reduce or waive the Grand Opening Obligation if the restaurant is located in a Captive Audience Location, as defined in Item 12.
The Grand Opening Obligation requires franchisees to spend a minimum of $25,000 on grand opening advertising. This amount increases to at least $35,000 if the restaurant is the first to open in a Designated Market Area. The advertising must occur within a 90-day period before and after the restaurant's opening.
Alternatively, Moes Southwest Grill may require the franchisee to pay the Grand Opening Obligation to them or the Ad Fund, which Moes Southwest Grill will then spend according to a grand opening advertising plan that they designate or approve. This provides Moes Southwest Grill with flexibility in managing grand opening advertising strategies, especially in specific locations or market conditions.