What is the purpose of the Brand Fund that Southern Steer may establish?
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 Southern Steer's 2025 Franchise Disclosure Document, the Brand Fund, if established, is intended to promote expansion and increase brand awareness and preference for the Southern Steer system. Franchisees will contribute 1% of their weekly gross revenues to this fund, payable at the same time as royalty fees. These contributions will be deposited into the Brand Fund, which Southern Steer will administer.
Southern Steer retains the right to modify the Brand Fund contribution amount, with the ability to increase, reduce, or suspend it, provided they give prior notice to franchisees. This flexibility allows Southern Steer to adjust marketing efforts based on current market conditions or the overall financial health of the franchise system.
In addition to the Brand Fund, Southern Steer also reserves the right to establish local advertising cooperatives, requiring franchisees in a designated area to contribute up to 1% of their monthly gross revenues. However, as of the date of the 2025 Disclosure Document, no local advertising cooperatives have been established. Franchisees should inquire whether Southern Steer anticipates establishing these cooperatives in the future, as this would add to their overall advertising expenses.