Under what conditions is a Local Advertising Cooperative Contribution payable for a Southern Steer franchise?

According to Southern Steer's 2025 Franchise Disclosure Document, a Local Advertising Cooperative Contribution is payable if a Local Advertising Cooperative is established and Southern Steer requires the franchisee to participate. The contribution can be up to 1% of monthly Gross Revenues and is due monthly. As of the date of the FDD, Southern Steer does not currently have any Local Advertising Cooperatives established.

Southern Steer reserves the right to establish local advertising cooperatives composed of all franchised Southern Steer Businesses in a designated area. When this occurs, franchisees will pay the Local Advertising Cooperative Fee in addition to the Brand Fund Contribution. Southern Steer may exclude businesses owned by them or their affiliates from participating in a Local Advertising Cooperative.

However, all Southern Steer Businesses required to be members of the Local Advertising Cooperative (including locations owned by Southern Steer or their Affiliates that participate) will contribute on the same basis and have the same voting power. In the event of a tie vote, Southern Steer will cast the deciding vote. This ensures that all participating members contribute fairly and have a voice in the cooperative's decisions, although Southern Steer retains ultimate control in case of a tie.