factual

Can Southern Steer use amounts from the Brand Fund to pay for its administrative and overhead costs?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor may use amounts from the Brand Fund to pay for Franchisor's and its Affiliates' administrative and overhead costs, expenses and salaries related to the administration and operation of the Brand Fund and its programs, including conducting market research, social media, website development and management, preparing material and other programs as well as administration, collecting and accounting for Brand Fund Contributions.

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 can use the Brand Fund to cover its administrative and overhead costs. Specifically, Southern Steer can use the Brand Fund to pay for its own and its affiliates' administrative and overhead costs, expenses, and salaries. These costs must be related to the administration and operation of the Brand Fund and its programs. These programs include market research, social media, website development and management, and preparing materials. The Brand Fund can also be used for administration, collecting, and accounting for Brand Fund contributions.

This means that a portion of the 1% of weekly gross revenues that franchisees contribute to the Brand Fund may be used to offset Southern Steer's corporate expenses related to managing the Brand Fund. While this is a common practice in franchising, prospective franchisees should understand that their contributions are not exclusively used for direct advertising or marketing efforts that immediately benefit their specific location.

It's important for potential Southern Steer franchisees to review the annual unaudited financial statement for the Brand Fund, which Southern Steer will provide upon written request. This statement will show how the funds in the Brand Fund were spent during the previous year. Since Southern Steer does not have the Brand Fund audited, franchisees should consider this when evaluating the financial transparency of the Brand Fund.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.