What is the purpose of establishing a Brand Fund for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Revenues was provided to Us, or (b) an estimated amount due. If you open your Southern Steer Business prior to your Required Opening Date, you will pay Royalty beginning the third month of opening your Southern Steer Business.
- (3). Brand Fund Contribution. 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.
- (4) Local Advertising Cooperative Fee. We reserve the right to establish local advertising cooperatives composed of all franchised Southern Steer Business in a designated area. (See Item 11). When We do, in addition to the Brand Fund Contribution, You will pay the Local Advertising Cooperative Fee. We may exclude Southern Steer Businesses owned by Us or Our Affiliates from participation in a Local Advertising Cooperative.
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's purpose is 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, which Southern Steer controls. These contributions are due at the same time as royalty payments.
Southern Steer retains the right to adjust the Brand Fund contribution amount, with prior notice to franchisees. This means that while the contribution is currently set at 1% of weekly gross revenues, it could be increased, reduced, or even suspended in the future. Franchisees should be aware that changes to this fee could impact their profitability.
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. Currently, no local advertising cooperatives are established. Franchisees should inquire about the criteria for establishing these cooperatives and the potential financial impact on their business.