Who forms the Local Advertising Cooperative for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to all other advertising requirements, We may from time to time, in Our sole discretion, establish local advertising cooperatives within certain areas (each a "Local Advertising Cooperative"). 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.
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 Southern Steer's 2025 Franchise Disclosure Document, if Southern Steer designates an area for a Local Advertising Cooperative, the Southern Steer Businesses located within that area will form the cooperative. The purpose of this cooperative is to administer advertising programs and develop promotional materials, subject to Southern Steer's approval, for use by its members. The cooperative operates according to written by-laws approved by Southern Steer and a majority of the franchisees within the cooperative, with each Southern Steer Business having one vote. In the event of a tie, Southern Steer will cast the deciding vote.
Southern Steer retains significant control over the Local Advertising Cooperative. They have the right to consent to any changes to the by-laws or organizational structure. All advertising and promotional materials must conform to Southern Steer's standards. Franchisees within the designated area are required to join the cooperative and contribute up to 1% of their Gross Revenue from the prior month. These fees are applied against local advertising requirements but are in addition to the Brand Fund Contribution.
Southern Steer also has the option to exclude any particular Southern Steer Business, including those owned by them or their affiliates, from participating in the Local Advertising Cooperative. However, all members, including those owned by Southern Steer or its affiliates, will contribute on the same basis. Southern Steer can provide the cooperative with 90 days' notice of special promotions that members will be required to participate in, with the cost of these promotions counting towards the franchisee's contribution to the cooperative. The Local Advertising Cooperative will prepare annual unaudited financial statements available for franchisee review, but Southern Steer retains the power to change, dissolve, or merge the cooperative.