Under what condition is a Southern Steer franchisee required to participate in a Local Advertising Cooperative?

According to the 2025 Southern Steer Franchise Disclosure Document, a franchisee is required to participate in a Local Advertising Cooperative when two or more franchised Southern Steer businesses, including the franchisee's, are opened in a market area designated by Southern Steer. The decision to require participation in the cooperative is at Southern Steer's sole discretion.

The purpose of the Local Advertising Cooperative is to conduct and administer media advertising, promotion, marketing, and public relations for the benefit of the Southern Steer businesses located in the designated market area. The cooperative consists of all franchisee-owned Southern Steer businesses within that market area, with each business having one vote on matters discussed at meetings.

Each Southern Steer business contributes to the cooperative, with contributions up to 1% of the monthly Gross Revenues generated during the previous month. These funds are used for Production and Marketing programs and campaigns. The Local Advertising Cooperative cannot conduct any Production and Marketing program or campaign without prior written approval from Southern Steer for all concepts, materials, or media proposed. The Local Advertising Cooperative Fee paid by the Franchisee will be applied to satisfy the Franchisee's Local Marketing requirement.