Is a Southern Steer franchisee required to participate in promotional campaigns, and who is responsible for the costs?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) Promotions.
Franchisee will fully participate in all such promotional campaigns, prize 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.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to participate fully in all promotional campaigns, prize contests, special offers, and other programs, whether national, regional, or local. These campaigns can include the introduction of new products, services, and marketing programs that Southern Steer directs or approves.
The FDD specifies that the franchisee is responsible for covering the costs associated with their participation in these promotional activities. This means a franchisee must budget for these expenses as part of their ongoing operational costs.
In addition to mandatory participation in promotional campaigns, Southern Steer franchisees must also adhere to specific local marketing requirements. Franchisees are required to spend a minimum of 1% of their annual Gross Revenues on local marketing, sales, and promotion of their Southern Steer Business. This spending must align with the guidelines outlined in the Brand Manual, ensuring that all marketing efforts meet Southern Steer's standards and contribute to a consistent brand image.