Is Southern Steer required to spend the Brand Fund contribution in the same calendar year it was paid?

According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer is not required to spend Brand Fund contributions in the same calendar year they are received. This provides Southern Steer with flexibility in managing the Brand Fund, allowing them to allocate resources based on strategic needs rather than being restricted to a specific annual budget.

This policy allows Southern Steer to carry over any unspent funds to the next year, accruing interest that benefits the Brand Fund. Southern Steer can also borrow from the Brand Fund to cover deficits or invest any surplus for future use. This approach enables Southern Steer to handle both short-term financial needs and long-term strategic investments related to marketing and brand development.

For a prospective franchisee, this means that the marketing and advertising efforts supported by their Brand Fund contributions may not always be immediately apparent or directly tied to the year in which the contributions were made. However, Southern Steer will provide an annual unaudited financial statement for the Brand Fund upon written request, detailing how the funds were spent in the previous year. While the Brand Fund is not audited, this statement offers some transparency into the fund's usage. Franchisees should consider the potential implications of this policy, recognizing that the benefits of their contributions may be realized over time and that the franchisor has significant discretion in managing the fund.