Are Southern Steer or its affiliates required to contribute to the Brand Fund?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish a Brand Fund upon 30 days prior notice to You. You will pay a weekly contribution in the amount of 1% of Gross Revenue ("Brand Fund Contribution"). The weekly contribution is uniform to all franchisees. Neither We nor our affiliates contribute to the Brand Fund. The Brand Fund Contribution will be deposited by Us into a segregated commercial or savings bank account ("Brand Fund"). The Brand Fund Contribution will not be credited towards Your Local Advertising obligation or any contribution to a Local Advertising Cooperative.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, neither Southern Steer nor its affiliates are required to contribute to the Brand Fund. However, Southern Steer franchisees must contribute 1% of gross revenue weekly to the Brand Fund.
The Brand Fund is used for various advertising and public relations expenditures, including media advertising, salaries, administrative costs, direct response literature, social media, direct mailings, brochures, field visits, the annual Brand Conference, surveys, and agency costs. Southern Steer administers the Brand Fund and may be reimbursed for reasonable administrative costs, salaries, and overhead expenses related to its operation.
As of January 31, 2025, Southern Steer had not collected any Brand Fund contributions. The amount spent in any fiscal year may be more or less than the aggregate contributions of all Southern Steer businesses. The Brand Fund may borrow from Southern Steer or other lenders to cover deficits or invest any surplus. Southern Steer does not guarantee that advertising expenditures from the Brand Fund will directly benefit any franchisee on a pro rata basis.