What is the purpose of the Local Advertising Cooperative for Southern Steer businesses?

According to Southern Steer's 2025 Franchise Disclosure Document, the purpose of the Local Advertising Cooperative is to conduct Production and Marketing for the benefit of all Southern Steer Businesses located in the market area. The cooperative is formed when two or more franchised Southern Steer businesses are opened in a market area designated by Southern Steer. Southern Steer has the right to require the Southern Steer businesses in the market area to participate in the cooperative. Each Southern Steer business in the market area will be a Member of the Local Advertising Cooperative. Each Member will have one vote for each Southern Steer Business that such Member owns and operates in the market area on all matters to be voted upon at duly convened meetings.

Each Member will be given five business days written notice of any proposed meeting. A quorum consisting of a majority of all Members of the Local Advertising Cooperative will be required to convene any meeting of the Local Advertising Cooperative. A majority vote by the Members present at a duly convened meeting will be required to pass any proposed resolutions or motions. All meetings will be conducted according to Robert's Rules of Order.

The Local Advertising Cooperative will not conduct any Production and Marketing program or campaign for the Southern Steer Businesses in the market area unless and until Southern Steer has given the Local Advertising Cooperative prior written approval for all concepts, materials or media proposed for any such Production and Marketing program or campaign. On the first day of each month, each Member of the Local Advertising Cooperative will contribute to the Local Advertising Cooperative up to 1% of the monthly Gross Revenues generated during the previous month by the Member's Southern Steer Business. The Local Advertising Cooperative Fee contributed by the Members will be used by the Local Advertising Cooperative for Production and Marketing programs and campaigns for the benefit of all Southern Steer Business in the market area.

The cost of all Production and Marketing in the market area must be approved by a majority vote of all Members present at a duly convened meeting. If the cost of the Production and Marketing approved by the Members exceeds the amount of funds available to the Local Advertising Cooperative, then the Local Advertising Fee payable by the Franchisee and all other Members to the Local Advertising Cooperative may be increased by vote of a majority of the Members present at a duly convened meeting. The Franchisee will contribute the amount of the Local Advertising Cooperative Fee agreed to by the Members to the Local Advertising Cooperative in accordance with this provision. The Local Advertising Cooperative may elect to collect the Local Advertising Cooperative Fee on another basis upon majority vote of all Members present at a duly convened meeting.