How are the by-laws of a Southern Steer Local Advertising Cooperative approved?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If We designate an area for the establishment of a Local Advertising Cooperative, the Southern Steer Businesses located within that area will form the Local Advertising Cooperative for the purpose of administering advertising programs and developing, subject to Our approval, promotional materials for use by the members of the Local Advertising Cooperative. The Local Advertising Cooperative will operate according to written by-laws approved by Us and by the majority of the franchisees making up the Local Advertising Cooperative members, on the basis of one vote for each Southern Steer Business within the Local Advertising Cooperative. In the event of a tie vote, We will cast the deciding vote.
We have the right to consent to any proposed change to the by-laws or other organizational structure of the Local Advertising Cooperative. All advertising and promotion materials used by the Local Advertising Cooperative or provided to its members must conform with Our standards. If Your Southern Steer Business is within the area We establish for a Local Advertising Cooperative, You must become a member of that Local Advertising Cooperative and contribute to the Local Advertising Cooperative the amounts designated by the governing body of that Local Advertising Cooperative, up to 1% of Gross Revenue from Your Southern Steer Business from the prior month. Any Local Advertising Cooperative fees will be applied against the amounts required for local advertising but will be in addition to the Brand Fund Contribution. At Our request, You must furnish Us with copies of the documentation evidencing Your Local Advertising Cooperative contributions as We may request.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the by-laws of a Local Advertising Cooperative require approval from two parties. First, Southern Steer must approve the by-laws. Second, a majority of the franchisees within the Local Advertising Cooperative must also approve them, with each Southern Steer Business getting one vote. In the event of a tie, Southern Steer holds the deciding vote.
Southern Steer also retains the right to consent to any proposed changes to the by-laws or the organizational structure of the Local Advertising Cooperative. This ensures that the cooperative's operations align with the brand's overall standards and marketing strategies. All advertising and promotion materials used by the Local Advertising Cooperative must also conform to Southern Steer's standards.
If a Southern Steer franchisee is located within an area designated for a Local Advertising Cooperative, they are required to become a member and contribute to the cooperative. The contribution can be up to 1% of the Gross Revenue from the Southern Steer Business from the prior month. These fees are applied against the amounts required for local advertising but are in addition to the Brand Fund Contribution. Franchisees must also furnish documentation of their Local Advertising Cooperative contributions to Southern Steer upon request.