When does a Southern Steer franchisee begin paying the Brand Fund Contribution?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
You will begin paying the Brand Fund Contribution the same month You commence paying the Royalty or, if We do not have a Brand Fund established at the time, You will commence paying the Brand Fund Contribution, the same month We establish a Brand Fund.
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, a franchisee will begin paying the Brand Fund Contribution at the same time they start paying the Royalty fee. The FDD also states that if Southern Steer does not have a Brand Fund established at the time the franchisee begins paying the Royalty, the franchisee will commence Brand Fund Contributions the same month that Southern Steer establishes a Brand Fund.
The Royalty fee is due beginning the third month from the franchisee's Required Opening Date. The Brand Fund Contribution is 1% of weekly Gross Revenues, and is paid at the same time the Royalty is paid. These funds are deposited into the Brand Fund, which is controlled by Southern Steer.
Southern Steer retains the right to modify the Brand Fund Contribution, including increasing, reducing, or suspending it, provided they give prior notice to franchisees. This means that while the initial contribution is set at 1% of weekly gross revenues, this could change over time. It is important for prospective franchisees to understand these potential changes, as they can impact the overall cost of operating the franchise.