Can Southern Steer exclude any particular Southern Steer Business from participating in a Local Advertising Cooperative?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We may exclude any particular Southern Steer Business (including locations owned by Us or Our Affiliates) from participation in a Local Advertising Cooperative, but all Southern Steer Business required to be members of the Local Advertising Cooperative (including locations owned by Us or Our Affiliates) will contribute on the same basis. Further, We may provide the Local Advertising Cooperative with 90 days' notice of special promotions in which the Local Advertising Cooperative and its members will be required to participate. The cost of any such special promotion will count towards the amounts You are required to contribute to the Local Advertising Cooperative. If established, the Local Advertising Cooperative will prepare annual unaudited financial statements, which will be available for review by You upon request. We will have the power to require the Local Advertising Cooperative to be changed, dissolved, or merged.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer has the authority to exclude specific Southern Steer businesses, including those owned by the company or its affiliates, from participating in a Local Advertising Cooperative. However, if a Southern Steer Business is required to be a member of the Local Advertising Cooperative, it must contribute on the same basis as all other members, including company-owned locations.
Southern Steer can provide the Local Advertising Cooperative with 90 days' notice regarding special promotions that the cooperative and its members will be required to participate in. The costs associated with these special promotions will count towards the franchisee's required contributions to the Local Advertising Cooperative. The Local Advertising Cooperative is responsible for preparing annual unaudited financial statements, which are available for review by franchisees upon request. Southern Steer also retains the power to modify, dissolve, or merge the Local Advertising Cooperative.
This means that while Southern Steer franchisees may be required to participate in a Local Advertising Cooperative and contribute up to 1% of gross revenue from the prior month, Southern Steer can make exceptions to this rule. Franchisees should inquire about the criteria Southern Steer uses to determine which businesses may be excluded from participating in the Local Advertising Cooperative.