What happens in the event of a tie vote within a Southern Steer Local Advertising Cooperative?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, in the event of a tie vote within a Local Advertising Cooperative, Southern Steer will cast the deciding vote. Each Southern Steer Business within the cooperative gets one vote.
This means that while franchisees have a say in local advertising programs and promotional materials through the Local Advertising Cooperative, Southern Steer ultimately retains control. The Local Advertising Cooperative operates according to written by-laws approved by Southern Steer and the majority of franchisees in the cooperative.
For a prospective franchisee, this highlights the importance of understanding Southern Steer's vision for advertising and marketing. While franchisees can participate in the Local Advertising Cooperative, Southern Steer has the final say in the event of a tie, ensuring that advertising aligns with the overall brand strategy. Franchisees should inquire about the typical issues that are voted upon within the cooperative and how frequently tie votes occur.