In what promotional campaigns is a Southern Steer franchisee required to participate?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
s Southern Steer Business as set forth in the Brand Manual and this Agreement.
(e) Cooperation. Franchisee agrees to cooperate with and communicate directly with Franchisor. Franchisee agrees to notify Franchisor of any change of Franchisee's Southern Steer Business or personal address, telephone number, facsimile number or e-mail address within 10 days of any such change.
(f) Promotions. Franchisee will fully participate in all such promotional campaigns, prize contests, special offers and other programs, national, regional or local in nature (including the introduction of new products, services and Food, Beverages and Products, or other marketing programs directed or approved by Franchisor), which are prescribed from time to time by Franchisor. Franchisee will be responsible for the costs of such participation.
(g) Gift Cards; Loyalty Programs. Franchisee will not create or issue any gift certificates or gift cards and will only sell gift certificates or gift cards that have been issued by the Franchisor that are accepted at all Southern Steer Businesses. Franchisee will participate in all gift certificate and/or gift card administration programs as may be designated by the Franchisor from time to time. The Franchisee will honor all coupons, gift certificates, gift cards and other programs or promotions as directed by the Franchisor, even if the Franchisee is not required by the Franchisor to actively offer or promote such programs or promotions within the Franchisee's Protected Area. The Franchisee will fully participate in all customer loyalty or frequent customer programs approved by the Franchisor, even if the Franchisee is not required by the Franchisor to actively promote such programs within the Franchisee's Protected Area. The Franchisee acknowledges that a customer loyalty program and gift card program may include technology and system components or applications involving third-party vendors identified by the Franchisor, and the Franchisee agrees to timely execute and deliver such documents, contracts, or agreements as the Franchisor may reasonably require to facilitate such programs. The Franchisee will not issue coupons or discounts of any type for use at its Southern Steer Business except as approved by the Franchisor in writing, which may be withheld in its sole and absolute discretion.
(h) Southern Steer Business Hours. Franchisee's Southern Steer Business will be open during the hours specified in the Brand Manual.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees must participate fully in all promotional campaigns, prize contests, special offers, and other programs, whether national, regional, or local. These include the introduction of new products, services, and food and beverage items, as well as other marketing programs directed or approved by Southern Steer. The franchisee is responsible for covering the costs associated with their participation in these programs.
Southern Steer franchisees are also obligated to participate in all gift certificate and/or gift card administration programs designated by the company. They must honor all coupons, gift certificates, gift cards, and other promotions as directed by Southern Steer, even if they are not required to actively promote these programs within their protected area. Additionally, franchisees must fully participate in all customer loyalty or frequent customer programs approved by Southern Steer, regardless of whether they are required to actively promote these programs in their area.
Furthermore, Southern Steer may require franchisees to participate in a local advertising cooperative if two or more franchised businesses are opened in a designated market area. This cooperative conducts and administers media advertising, promotion, marketing, and public relations for the benefit of the Southern Steer businesses in the market area. Franchisees are also required to spend a minimum of $15,000 on grand opening marketing, advertising, and promotions within 90 days of opening their business. Beginning the first month after the Required Opening Date, franchisees must spend a minimum of 1% of their annual Gross Revenues for local marketing, sales, and promotion of their Southern Steer Business.
These requirements ensure that all Southern Steer locations maintain a consistent brand image and participate in coordinated marketing efforts. While this can benefit franchisees through increased brand awareness and customer loyalty, it also means they must allocate a significant portion of their revenue and resources to these mandated promotional activities. Prospective franchisees should carefully consider these financial obligations and the level of control Southern Steer exerts over marketing strategies.