Can Southern Steer change the Brand Fund contribution amount?
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. |
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Brand Fund contribution is initially set at 1% of weekly Gross Revenues, paid at the same time as the Royalty. The funds are deposited into a Brand Fund controlled by Southern Steer.
Southern Steer retains the right to modify the Brand Fund contribution. Specifically, Southern Steer may increase, reduce, or suspend the Brand Fund Contribution, provided they give prior notice to franchisees. This means that while the contribution is currently 1%, it could change in the future.
This flexibility allows Southern Steer to adjust marketing efforts and funding based on the needs of the franchise system. However, it also introduces a degree of uncertainty for franchisees, as their marketing expenses could fluctuate. Prospective franchisees should inquire about the conditions under which Southern Steer would change the Brand Fund contribution and how much advance notice would be given. This is a fairly standard practice in franchising, as it allows the franchisor to respond to changing market conditions and competitive pressures.
The Brand Fund is intended to promote expansion and increase brand awareness for the Southern Steer system. Franchisees will begin paying the Brand Fund contribution at the same time they start paying the Royalty, or when Southern Steer establishes a Brand Fund, if one does not already exist.