factual

Are audited financial statements for the Southern Steer Brand Fund available to franchisees?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

proves the marketing and advertising materials prepared by Franchisee, Franchisor may use such marketing and advertising materials and make them available to other franchisees, licensees or Franchisor's Affiliates.

  • (b) Marketing Reports. Franchisee will submit to Franchisor a marketing report for the Calendar Year's Local Marketing Commitment activities and amounts spent on the activities in the form and within the period set out in the Brand Manual.

13. BRAND FUND

13.1. Purpose. Franchisee understands and acknowledges that the Brand Fund Contribution set out in Section 3.2(b) and the Brand Fund is intended to maximize general public recognition and patronage of the System and the products and services offered by the Southern Steer Businesses, for the benefit of all Franchisor's licensees and franchisees. Franchisor does not guarantee that advertising expenditures from the Brand Fund will benefit Franchisee or any other franchisee or licensee directly or on a pro-rata basis. Franchisor undertakes no obligation to ensure that the Brand Fund expenditures in or affecting any geographic area are proportionate or equivalent to the contributions of franchisees or licensees operating in that geographic area.

  • 13.2. Use of the Brand Fund. Franchisor has the absolute and unilateral right to determine when, how and where the Brand Fund Contributions and other payments deposited into the Brand Fund will be spent. This includes (a) the production and placement of media advertising, media relations, creating and testing direct response literature, social media, direct mailings, brochures, collateral material, advertising and public relations expenditures; (b) salaries and administrative costs, insurance, overhead, travel expenses, agency costs and commissions and similar and other expenses incurred by the Brand Fund related to its activities; (c) collection costs and legal expenses related to the Brand Fund's activities; (d) development, modification and management of mobile apps, software, technology solutions and related integration tools and website development, modifications and management (including intranet websites); (e) surveys, market and customer research, product and supplier testing, demographic research, guest satisfaction programs and services, independent shopping, secret shopper and service evaluations; (f) Brand Conferences, Periodic Seminars and Conferences; (g) in store advertising and menu boards and signage;

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the FDD does not specify whether Southern Steer provides franchisees with audited financial statements for its Brand Fund. While the document outlines the purpose, use, and potential termination of the Brand Fund, it does not explicitly state that the franchisor will furnish franchisees with audited financial statements related to the Brand Fund.

However, the FDD does state that the Brand Fund is intended to maximize public recognition of the Southern Steer system for the benefit of all franchisees. The franchisor has the right to determine how the Brand Fund contributions will be spent, including on various advertising, marketing, and administrative expenses.

Prospective franchisees should directly ask Southern Steer whether audited financial statements for the Brand Fund are available for review. Understanding how the Brand Fund is managed and accounted for is crucial for franchisees to assess the transparency and effectiveness of the franchisor's marketing efforts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.