Is a Southern Steer franchisee required to provide documentation of their Local Advertising Requirement?

According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to engage in local marketing activities, spending 1% of their gross revenue annually on advertising and promotion within their protected area. Southern Steer may, at any time, require franchisees to provide documentation of their local advertising spend. This means franchisees must keep detailed records and be prepared to submit proof of their advertising expenses to the franchisor upon request.

In addition to the general local advertising requirement, Southern Steer franchisees must spend a minimum of $15,000 on grand opening advertising and sales promotions within the first 90 days of opening their business. The franchisor may also require proof of these expenditures, including copies of advertising materials and receipts. This grand opening requirement is separate from the ongoing 1% local advertising spend.

Southern Steer may establish Local Advertising Cooperatives in certain areas, requiring franchisees within those areas to participate and contribute up to 1% of their gross revenue from the prior month. These cooperative fees count toward the local advertising requirement but are in addition to any Brand Fund contributions. Franchisees must provide documentation of their contributions to the Local Advertising Cooperative if requested by Southern Steer.

It is important for prospective Southern Steer franchisees to understand these advertising obligations and the potential need to provide documentation. Failure to comply with these requirements could result in a breach of the franchise agreement. Franchisees should maintain meticulous records of all advertising expenses and cooperative contributions to ensure they can readily provide proof of compliance when requested.