Can Southern Steer exclude its own businesses from participating in a Local Advertising Cooperative?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We may exclude Southern Steer Businesses owned by Us or Our Affiliates from participation in a Local Advertising Cooperative.
However, all Southern Steer Businesses required to be members of the Local Advertising Cooperative (including locations owned by Us or Our Affiliates that participate) will contribute on the same basis and have the same voting power.
In the event of a tie vote, We will cast the deciding vote.
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, Southern Steer has the right to exclude its own businesses or those of its affiliates from participating in a Local Advertising Cooperative. However, if Southern Steer or its affiliates' locations do participate in the cooperative, they must contribute on the same basis and have the same voting power as other members. In the event of a tie vote within the cooperative, Southern Steer will cast the deciding vote.
Currently, as of the date of the FDD, there are no Local Advertising Cooperatives established. If Southern Steer establishes these cooperatives in the future, franchisees may be required to contribute up to 1% of their monthly Gross Revenues to the cooperative. This contribution would be in addition to the Brand Fund Contribution, which is 1% of weekly Gross Revenues.
This policy ensures that while Southern Steer retains control over participation in local advertising efforts, it also maintains fairness and equal contribution among participating members. Prospective franchisees should be aware of the potential for these cooperatives to be established and the associated costs, as well as Southern Steer's ultimate decision-making power within the cooperatives.