Besides interest, what other charges can Southern Steer assess for late payments or insufficient funds?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Fees.
- (c) Interest; Late Charge; Insufficient Fund Fee. All amounts, Fees and charges which Franchisee owes to Franchisor, its Affiliates or service providers will bear interest from the date due until fully paid at 18% per annum or the maximum rate allowable by applicable law, whichever is less. Franchisor may also assess its current late charge and insufficient fund fees for any late payments and for Franchisee's failure to timely submit required reports to Franchisor. The Franchisee will, on demand, reimburse the Franchisor for the actual costs incurred by the Franchisor in the collection of any past-due Fees from the Franchisee, including reasonable attorneys' fees and costs.
- (d) Application of Payments; Off Set. Franchisor will have sole discretion to apply any payments received from Franchisee or any indebtedness of Franchisor to Franchisee, to any past due indebtedness of Franchisee, Franchisee's Operating Principal, Owners, Guarantors or Franchisee's Affiliates to Franchisor or its Affiliates of whatever nature and without regard to when such indebtedness arose and/or to interest.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, in addition to interest, Southern Steer may assess late charges and insufficient fund fees for late payments or failure to submit required reports. The specific amounts of these charges are determined by Southern Steer at the time of the infraction. Furthermore, franchisees are responsible for reimbursing Southern Steer for actual costs incurred during the collection of past-due fees, including reasonable attorney's fees and costs.
Southern Steer franchisees must maintain a sufficient balance in their bank account to cover all fees payable to Southern Steer via electronic funds transfer (EFT). Failure to maintain a sufficient balance or closing the designated account without providing new account information constitutes a default under the Franchise Agreement. The franchisee is responsible for all fees imposed by their bank or financial institution related to EFT payments.
These policies highlight the importance of timely payments and accurate reporting for Southern Steer franchisees. Failing to meet these obligations can result in additional charges and potential legal action. Prospective franchisees should carefully consider these financial responsibilities and ensure they have adequate resources to meet them.