What is the Brand Fund Contribution used for by Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty | Beginning on the third | Wednesday each | The Royalty is based on Gross |
| month from Your | week for the | Revenues from the previous week | |
| Required Opening Date, 6% of annual Gross Revenues from $1.00 to $1,000,000; 5% from $1,000,001 to $2,000,000; and 4% from $2,000,001 and greater.(2). | preceding week. | for each individual Southern Steer Business You operate. Payments are made via electronic fund transfer ("EFT") or automatic withdrawal. We reserve the right to designate another day of the week for payment. The Gross Revenue calculation is re set each calendar year and is based on each individual Southern Steer Business You operate. | |
| Brand Fund | 1% of weekly Gross | At the time Royalty | Deposited in the brand and |
| Contribution(3) | Revenues. | is paid. | marketing fund ("Brand Fund") controlled by Us. We may increase, reduce, or suspend the Brand Fund Contribution upon prior notice. |
| Type of Fee(1) | Amount | Date Due | Remarks |
| Local Advertising Cooperative Contribution(4) | Up to 1% of monthly Gross Revenues. | Monthly. | Payable if a Local Advertising Cooperative is established and We require You to participate (See Item 11). We do not currently have any Local Advertising Cooperatives established. |
| Supplies and Inventory(5) | Actual Cost. | Upon receipt of supplies or inventory. | You must reimburse Us for all purchases of goods and services We make on Your behalf. |
| Technology Fee | The then current fee. Currently, $507 per month. | Monthly. | The Technology Fee includes the monthly fee paid to our designated suppliers for IFX, email addresses and Google Business page. The Technology Fee may change upon prior notice to You if the vendor changes the fees or We change vendors. |
| POS System Fee | The then current fee. Currently, $800 per month. | Monthly. | The POS System Fee includes the fee paid to our designated supplier for integration and cloud-based support. This fee may change upon prior notice to You if the vendor changes the fees, We change functionality, or We change vendors. |
| Direct Ad TV | The then current fee. Currently, $180 per year. |
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the Brand Fund Contribution is used to promote expansion and increase brand awareness and preference for the Southern Steer system. The Brand Fund Contribution is 1% of weekly gross revenues, paid at the same time as the royalty. These funds are deposited into a brand and marketing fund controlled by Southern Steer. Southern Steer retains the right to increase, reduce, or suspend the Brand Fund Contribution with prior notice.
The Brand Fund Contribution is paid beginning the same month the franchisee commences paying the royalty. If Southern Steer does not have a Brand Fund established at the time the franchisee begins paying royalties, the franchisee will commence paying the Brand Fund Contribution the same month Southern Steer establishes a Brand Fund.
In addition to the Brand Fund Contribution, Southern Steer reserves the right to establish local advertising cooperatives composed of all franchised Southern Steer businesses in a designated area. If established, franchisees will also pay a Local Advertising Cooperative Fee. All Southern Steer businesses required to be members of the Local Advertising Cooperative (including locations owned by Southern Steer or its affiliates that participate) will contribute on the same basis and have the same voting power. In the event of a tie vote, Southern Steer will cast the deciding vote.