Are Southern Steer Local Advertising Cooperative fees in addition to the Brand Fund Contribution?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If Your Southern Steer Business is within the area We establish for a Local Advertising Cooperative, You must become a member of that Local Advertising Cooperative and contribute to the Local Advertising Cooperative the amounts designated by the governing body of that Local Advertising Cooperative, up to 1% of Gross Revenue from Your Southern Steer Business from the prior month. Any Local Advertising Cooperative fees will be applied against the amounts required for local advertising but will be in addition to the Brand Fund Contribution.
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, Local Advertising Cooperative fees are in addition to the Brand Fund Contribution. If a Local Advertising Cooperative is established in the franchisee's area, the franchisee must become a member and contribute to it. The contribution amount is determined by the cooperative's governing body, up to 1% of the Southern Steer Business's gross revenue from the prior month.
This Local Advertising Cooperative fee is applied against the amounts required for local advertising, but it does not offset the Brand Fund Contribution. The franchisee is still responsible for paying the Brand Fund Contribution, which is a separate fee. The Brand Fund Contribution is a weekly payment of 1% of gross revenue.
This means that franchisees could potentially be responsible for contributing up to 2% of their gross revenue towards advertising, 1% for the Local Advertising Cooperative and 1% for the Brand Fund, in addition to the franchisee's independent local advertising obligations. Franchisees are also required to spend a minimum of $15,000 for grand opening advertising and sales promotions within the first 90 days of their Southern Steer Business opening.