What is the condition that triggers the requirement for Southern Steer franchisees to participate in a Local Advertising Cooperative?

According to Southern Steer's 2025 Franchise Disclosure Document, the requirement for franchisees to participate in a Local Advertising Cooperative is triggered when two or more franchised Southern Steer businesses, including the franchisee's, are opened in a market area designated by Southern Steer. At that point, Southern Steer has the right to require participation in the cooperative, which will conduct and administer media advertising, promotion, marketing, and public relations for the benefit of the Southern Steer businesses in the designated market area.

This means that if a franchisee opens a Southern Steer location in an area where there is already another franchised location or where another location opens subsequently, Southern Steer can mandate participation in a local advertising cooperative. This cooperative is designed to pool resources and coordinate marketing efforts to benefit all Southern Steer businesses in the area.

The franchisee should be aware that participation in the Local Advertising Cooperative involves contributing up to 1% of their monthly Gross Revenues to the cooperative. These funds are used for Production and Marketing programs and campaigns. The cost of these marketing activities must be approved by a majority vote of the cooperative members. Franchisees should inquire about how Southern Steer defines a "market area" and how frequently it mandates the formation of these cooperatives.