Is Southern Steer liable for any act or omission with respect to the Brand Fund?

According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer assumes no liability for any act or omission related to the Brand Fund. This includes, but is not limited to, the maintenance, direction, or administration of the Brand Fund or any other advertising account. This means that Southern Steer franchisees cannot hold the franchisor responsible for how the Brand Fund is managed or for any decisions made regarding its use.

Southern Steer's FDD states that the rights and obligations of both the franchisee and franchisor concerning the Brand Fund are governed solely by the franchise agreement. The agreement explicitly states that neither the agreement itself nor the Brand Fund creates a trust, fiduciary relationship, or similar arrangement between the franchisee and franchisor. This reinforces the franchisor's lack of liability and the franchisee's limited recourse regarding the Brand Fund.

This arrangement is fairly common in franchising, where franchisors typically maintain control over marketing and advertising funds to ensure brand consistency and strategic alignment. However, it also places the onus on prospective Southern Steer franchisees to carefully evaluate the franchisor's track record in managing such funds and to seek clarification on any concerns they may have before investing in the franchise. Franchisees should also note that their obligation to contribute to the Brand Fund is not diminished by any actions taken by Southern Steer.