Under what conditions can Southern Steer establish a Brand Fund?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish a Brand Fund upon 30 days prior notice to You. You will pay a weekly contribution in the amount of 1% of Gross Revenue ("Brand Fund Contribution"). The weekly contribution is uniform to all franchisees. Neither We nor our affiliates contribute to the Brand Fund. The Brand Fund Contribution will be deposited by Us into a segregated commercial or savings bank account ("Brand Fund"). The Brand Fund Contribution will not be credited towards Your Local Advertising obligation or any contribution to a Local Advertising Cooperative.
The Brand Fund may be used for, but not limited to, production and placement of media advertising, media relations salaries, administrative costs and creating and testing direct response literature, social media, direct mailings, brochures, collateral material, field visits, annual Brand Conference, advertising, surveys, or other public relations expenditures, including agency costs and commissions and for other similar expenses. Advertising may be placed in local, regional, or national media of Our choice, including print, direct mail, radio, online media, e-mail, social media, or television. The Brand Fund will not be used to solicit Franchisees. If You request, We will send You an annual unaudited financial statement for the Brand Fund that indicates how the Brand Fund has been spent during the past fiscal year. We do not have the Brand Fund audited, so audited financial statements are not available. We assume no other direct or indirect liability or obligation to collect amounts due to the Brand Fund or to maintain, direct or administer the Brand Fund.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer reserves the right to establish a Brand Fund. To do so, Southern Steer must provide franchisees with 30 days prior notice.
If the Brand Fund is established, franchisees will be required to contribute 1% of their gross revenue on a weekly basis. This contribution is uniform across all franchisees, and neither Southern Steer nor its affiliates will contribute to the fund. The funds will be deposited into a segregated commercial or savings bank account. These contributions will not count towards any local advertising obligations or contributions to a Local Advertising Cooperative.
The Brand Fund will be used for various advertising and public relations expenditures, including media advertising, salaries, administrative costs, direct response literature, social media, direct mailings, brochures, field visits, the annual Brand Conference, surveys, and agency costs. Advertising may be placed in local, regional, or national media, including print, direct mail, radio, online media, e-mail, social media, or television. The Brand Fund will not be used to solicit franchisees. Southern Steer will provide an annual unaudited financial statement for the Brand Fund upon request, indicating how the funds were spent during the past fiscal year. Southern Steer does not have the Brand Fund audited, so audited financial statements are not available and Southern Steer assumes no direct or indirect liability to collect amounts due to the Brand Fund or to maintain, direct or administer the Brand Fund.