Can Southern Steer terminate the Brand Fund at any time?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.6.
Termination Of Brand Fund.
The Brand Fund may be terminated at any time by Franchisor, in its sole discretion.
In the event that the Brand Fund is terminated, any remaining balance in the Brand Fund will be expended as provided for in Section 13.2 or returned to Franchisee on a pro-rata basis, in Franchisor's sole determination.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer has the authority to terminate the Brand Fund at any time, at their sole discretion. If the Brand Fund is terminated, any remaining balance will either be used as described in Section 13.2 of the FDD or returned to franchisees on a pro-rata basis, as determined solely by Southern Steer.
This clause gives Southern Steer significant control over the Brand Fund. While the fund is intended to benefit all franchisees, Southern Steer ultimately decides how and when it is used or if it should be terminated altogether. The pro-rata distribution of remaining funds, should the Brand Fund be terminated, is also at Southern Steer's discretion, meaning franchisees have no guarantee of how much they might receive back.
Prospective franchisees should consider the implications of this unilateral control. While a Brand Fund can be a valuable tool for marketing and brand awareness, its effectiveness depends on how it is managed. Franchisees should inquire about Southern Steer's historical use of the Brand Fund, its strategic goals for the fund, and the criteria it would use to determine whether to terminate the fund and how remaining balances would be distributed.