What is the purpose of the Brand Fund for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish a Brand Fund.
The purpose of the Brand Fund is to promote expansion and increase brand awareness and preference for the System (See Item 11).
The Brand Fund Contribution will be deposited into the Brand Fund administered by Us.
You will begin paying the Brand Fund Contribution the same month You commence paying the Royalty or, if We do not have a Brand Fund established at the time, You will commence paying the Brand Fund Contribution, the same month We establish a Brand Fund.
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the Brand Fund's purpose is to promote expansion and increase brand awareness and preference for the Southern Steer system. Franchisees are required to contribute 1% of their weekly gross revenues to this fund, which is controlled by Southern Steer. These contributions are due at the same time as royalty payments.
Southern Steer retains the right to adjust the Brand Fund contribution amount, including increasing, reducing, or suspending it, provided they give prior notice to franchisees. This flexibility allows Southern Steer to respond to changing market conditions or strategic priorities. The Brand Fund contributions are deposited into a brand and marketing fund, which Southern Steer administers.
In addition to the Brand Fund, Southern Steer also reserves the right to establish local advertising cooperatives, which would require additional contributions from franchisees within a designated area. However, as of the date of the 2025 Disclosure Document, no local advertising cooperatives have been established. If established, all Southern Steer businesses, including those owned by the franchisor or its affiliates, would contribute on the same basis and have the same voting power within the cooperative. In the event of a tie vote, Southern Steer will cast the deciding vote.
Prospective franchisees should consider the Brand Fund contribution and the potential for local advertising cooperative fees as part of their overall financial obligations. Understanding how these funds are used and the level of control franchisees have over marketing decisions is crucial for evaluating the franchise opportunity.