Who is responsible for the costs of participating in promotional campaigns for a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are responsible for the costs associated with participating in promotional campaigns. This includes national, regional, and local campaigns, prize contests, special offers, and other programs, as well as the introduction of new products, services, and marketing programs directed or approved by Southern Steer.

This means that in addition to the initial franchise fee and ongoing royalty payments, a Southern Steer franchisee must also budget for marketing and promotional expenses. These costs can vary depending on the scope and nature of the campaigns. Franchisees are required to participate fully in these campaigns, so they cannot opt out of incurring these expenses.

Furthermore, if two or more Southern Steer franchises operate in the same market area, Southern Steer has the right to require participation in a local advertising cooperative. In this case, franchisees may need to contribute up to 1% of their monthly gross revenues to the cooperative, which will be used for local production and marketing programs. The costs of these programs must be approved by a majority vote of the cooperative members. If the approved costs exceed the available funds, the Local Advertising Cooperative Fee may be increased.

Prospective franchisees should carefully consider these marketing costs when evaluating the financial viability of a Southern Steer franchise. It is important to understand the types of promotional campaigns that Southern Steer typically conducts and to estimate the potential costs of participation. Franchisees should also inquire about the likelihood of being required to participate in a local advertising cooperative and the potential financial implications of such participation.