Is a Southern Steer franchisee required to participate in a gift card or customer loyalty program?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
e contests, special offers and other programs, national, regional or local in nature (including the introduction of new products, services and Food, Beverages and Products, or other marketing programs directed or approved by Franchisor), which are prescribed from time to time by Franchisor. Franchisee will be responsible for the costs of such participation.
(g) Gift Cards; Loyalty Programs. Franchisee will not create or issue any gift certificates or gift cards and will only sell gift certificates or gift cards that have been issued by the Franchisor that are accepted at all Southern Steer Businesses. Franchisee will participate in all gift certificate and/or gift card administration programs as may be designated by the Franchisor from time to time. The Franchisee will honor all coupons, gift certificates, gift cards and other programs or promotions as directed by the Franchisor, even if the Franchisee is not required by the Franchisor to actively offer or promote such programs or promotions within the Franchisee's Protected Area. The Franchisee will fully participate in all customer loyalty or frequent customer programs approved by the Franchisor, even if the Franchisee is not required by the Franchisor to actively promote such programs within the Franchisee's Protected Area. The Franchisee acknowledges that a customer loyalty program and gift card program may include technology and system components or applications involving third-party vendors identified by the Franchisor, and the Franchisee agrees to timely execute and deliver such documents, contracts, or agreements as the Franchisor may reasonably require to facilitate such programs. The Franchisee will not issue coupons or discounts of any type for use at its Southern Steer Business except as approved by the Franchisor in writing, which may be withheld in its sole and absolute discretion.
(h) Southern Steer Business Hours. Franchisee's Southern Steer Business will be open during the hours specified in the Brand Manual. During business hours, the Franchisee will have Management Staff on duty responsible for supervising the Southern Steer Business's employees and operations.
(i) Personnel.
Source: Item 16 — ITEM. 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 42–43)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are generally required to participate in both gift card and customer loyalty programs. Specifically, franchisees must sell gift certificates or gift cards issued by Southern Steer that are accepted at all locations and participate in any gift card administration programs designated by Southern Steer. Franchisees must also honor coupons, gift certificates, gift cards, and other promotions as directed by Southern Steer, even if they are not required to actively promote these programs in their protected area. Furthermore, franchisees must fully participate in all customer loyalty or frequent customer programs approved by Southern Steer, regardless of whether they are required to actively promote them.
Southern Steer also states that participation in these programs may involve technology and system components or applications involving third-party vendors. Franchisees agree to execute and deliver any documents, contracts, or agreements that Southern Steer may reasonably require to facilitate such programs. Franchisees are prohibited from issuing their own coupons or discounts without written approval from Southern Steer, which may be withheld at Southern Steer's discretion.
Item 16 of the FDD states that Southern Steer requires franchisees, if permitted by applicable law, to participate in a gift card or other customer loyalty program in accordance with the provisions set forth in the Brand Manual or otherwise disclosed to the franchisee. To participate, franchisees will be required to purchase additional equipment and pay any fees applicable to the use of that equipment. Southern Steer has the right to determine how the amount of the gift cards or loyalty cards will be divided or otherwise accounted for, and Southern Steer reserves the right to retain the amount of any unredeemed gift cards.
These requirements ensure uniformity and brand consistency across all Southern Steer locations, allowing Southern Steer to manage customer loyalty and promotional activities effectively. However, franchisees should be aware of the potential costs associated with purchasing required equipment and paying fees for program participation. Additionally, franchisees need to comply with Southern Steer's directives regarding the administration and execution of these programs, including the use of designated third-party vendors and adherence to specific terms and conditions.