When does the local marketing spending requirement begin for a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning the first month after Franchisee's Required Opening Date and continuing for each Calendar Year of the Initial Term and any Interim Period, Franchisee will spend a minimum of 1% of Franchisee's annual Gross Revenues for marketing, sales and promotion of Franchisee's Southern Steer Business in accordance with the Brand Manual ("Local Marketing Requirement").
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees must begin local marketing efforts the month after their Required Opening Date. This ongoing local marketing commitment requires franchisees to spend a minimum of 1% of their annual Gross Revenues on marketing, sales, and promotion of their Southern Steer Business. These activities must align with the guidelines outlined in the Brand Manual.
This local marketing requirement is a continuous obligation throughout the Initial Term and any Interim Period of the franchise agreement. It ensures that franchisees actively promote their Southern Steer Business within their local market to build brand awareness and drive sales. The Brand Manual likely provides specific guidance on approved marketing activities and materials to maintain brand consistency.
In addition to this ongoing local marketing requirement, Southern Steer franchisees are also obligated to spend a minimum of $15,000 on grand opening marketing, advertising, and promotions within 90 days of opening their business to the public. This initial investment is separate from the ongoing 1% of gross revenues and is intended to create a strong initial impact in the local market. Franchisees must provide an accounting of these grand opening expenditures to Southern Steer within 30 days of request.