What is the purpose of the Local Advertising Cooperative Fee for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
tered 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. However, all Southern Steer Businesses required to be members of the Local Advertising Cooperative (including locations owned by Us or Our Affiliates that participate) will contribute on the same basis and have the same voting power. In the event of a tie vote, We will cast the deciding vote. There are currently no Local Advertising Cooperatives established as of the date of this Disclosure Document.
- (5) Supplies and Inventory.
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 Local Advertising Cooperative Fee is paid in addition to the Brand Fund Contribution if Southern Steer establishes local advertising cooperatives in a designated area. These cooperatives are composed of all franchised Southern Steer businesses within that area. The purpose of the fee is to fund these local advertising cooperatives, as detailed in Item 11 of the FDD. Currently, there are no Local Advertising Cooperatives established as of the date of the Disclosure Document.
All Southern Steer businesses required to be members of the Local Advertising Cooperative, including those owned by Southern Steer or its affiliates that participate, will contribute on the same basis and have the same voting power. However, Southern Steer reserves the right to exclude its own or affiliated businesses from participating in a Local Advertising Cooperative. In the event of a tie vote, Southern Steer will cast the deciding vote.
The Local Advertising Cooperative Contribution can be up to 1% of monthly Gross Revenues, payable monthly. This fee is contingent upon the establishment of a Local Advertising Cooperative and Southern Steer requiring the franchisee to participate. Prospective franchisees should inquire with Southern Steer about the likelihood of local advertising cooperatives being established in their area and how these cooperatives will be managed to ensure effective local advertising efforts.