What is the amount of the deposit that will be applied to the Initial Franchise Fee for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| by | This Deposit Agreement ("Agreement") is made as of ("Effective Date") and between Southern Steer Franchising International, LLC ("Franchisor"), and ("you", "your", "I" or "my") whose principal business address is |
|---|---|
| RECITAL | |
| I understand that my application for the grant of a franchise to operate a Southern Steer | |
| Business in the general area of, which was submitted on, has | |
| been approved. | |
| I acknowledge that I am using funds for the Initial Franchise Fee from my 401K, IRA other | |
| qualified retirement account roll-over or third-party lender ("Funds"). The Funds will be available | |
| on or before | |
| To continue the process of obtaining a license to operate a Southern Steer Business, I am | |
| paying a Deposit toward the Initial Franchise Fee in accordance with this Agreement. | |
| In consideration of the foregoing and the covenants and consideration below, Franchisor | |
| and I agree as follows: | |
| AGREEMENT | |
| 1. | Deposit. Upon execution of this Agreement, I will pay Franchisor a deposit in the amount |
| of $29,750 ("Deposit"). The full Deposit will be applied to the Initial Franchise Fee. Upon | |
| execution of the Franchise Agreement, my Deposit will be immediately non-refundable. | |
| The Deposit will be deemed earned by Franchisor for processing of my Franchise | |
| Agreement and for services performed following the effective date of my Franchise | |
| Agreement. Franchisor' |
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a deposit of $29,750 is required upon execution of the Deposit Agreement. This full deposit will be applied towards the initial franchise fee. Once the Franchise Agreement is executed, the deposit becomes immediately non-refundable.
The deposit is considered earned by Southern Steer for processing the Franchise Agreement and for services performed after the agreement's effective date. Southern Steer has the right to manage the deposit as a debtor, not as a trustee, and may either keep it in a separate account or combine it with general funds. Franchisees will not receive any interest on their deposit.
The franchisee is obligated to sign the Franchise Agreement when signing the Deposit Agreement. The remaining balance of the initial franchisee fee is due either upon receipt of funds from a 401K, IRA, other qualified retirement account roll-over, or third-party lender, or within 30 days from the Deposit Agreement's effective date, whichever occurs first. Franchisees must notify Southern Steer if they cannot obtain the balance of funds by the due date, and Southern Steer may extend the due date by an additional 30 days if the delay is due to delayed receipt of funds.