If the Southern Steer Brand Fund is terminated, how will the remaining balance be handled?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Termination Of Brand Fund.
The Brand Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 13.2 or returned to Franchisee on a pro-rata basis, in Franchisor's sole determination.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Brand Fund can be terminated at any time at Southern Steer's sole discretion. In the event of termination, any remaining balance in the Brand Fund will either be expended as outlined in Section 13.2 of the FDD or returned to franchisees on a pro-rata basis. The decision on how to distribute the remaining balance rests solely with Southern Steer.
Section 13.2 outlines how Southern Steer uses the Brand Fund, including media advertising, salaries and administrative costs, market research, website development, brand conferences, and loyalty programs. This means that upon termination, Southern Steer could choose to spend the remaining funds on any of these activities, even if the franchise system is ending.
For a prospective franchisee, this means there is no guarantee of receiving any portion of the remaining Brand Fund balance if the fund is terminated. Southern Steer has complete control over the distribution of these funds, which could be used for continued advertising efforts or returned to franchisees proportionally. It is important for potential franchisees to understand this lack of control over the Brand Fund, especially in the event of termination.