Is the weekly Brand Fund contribution uniform for all Southern Steer franchisees?
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.
Source: Item 11 — ITEM. 11 FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 26–35)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the weekly Brand Fund contribution is uniform for all franchisees. Each franchisee is required to pay 1% of their gross revenue on a weekly basis. This contribution is referred to as the "Brand Fund Contribution." Neither Southern Steer nor its affiliates contribute to this fund.
The Brand Fund is used for various advertising and public relations expenditures, including media advertising, media relations salaries, administrative costs, direct response literature, social media, direct mailings, brochures, field visits, the annual Brand Conference, surveys, and agency costs. Southern Steer has the discretion to place advertising in local, regional, or national media, including print, direct mail, radio, online media, e-mail, social media, or television.
Southern Steer will deposit the Brand Fund Contribution into a segregated commercial or savings bank account. Franchisees can request an annual unaudited financial statement for the Brand Fund to see how the funds were spent during the past fiscal year. The Brand Fund contribution is separate from and does not count towards any local advertising obligations or contributions to a Local Advertising Cooperative.