Can Southern Steer change the day of the week for royalty payments?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
f Contents Exhibit I: Deposit Agreement Exhibit J: State Effective Dates and Receipt
ITEM. 6 OTHER FEES
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty | Beginning on the third | Wednesday each | The Royalty is based on Gross |
| month from Your | week for the | Revenues from the previous week | |
| Required Opening Date, 6% of annual Gross Revenues from $1.00 to $1,000,000; 5% from $1,000,001 to $2,000,000; and 4% from $2,000,001 and greater.(2). | preceding week. | for each individual Southern Steer Business You operate. Payments are m |
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisor has the right to change the day of the week that royalty payments are due. The standard royalty payment is due each Wednesday for the preceding week's gross revenues. These payments are made via electronic fund transfer or automatic withdrawal. However, Southern Steer explicitly reserves the right to designate another day of the week for these payments.
This clause provides Southern Steer with flexibility in managing its cash flow and payment processing. For a franchisee, this means that the payment schedule is not fixed and could change during the term of the franchise agreement. While the FDD does not specify how much advance notice Southern Steer would provide before changing the payment date, franchisees should be aware that such changes are possible.
It is common for franchise agreements to grant the franchisor some degree of flexibility in administrative matters like payment schedules. Prospective franchisees should inquire about the circumstances under which Southern Steer might change the royalty payment day and how much notice would be given. Understanding these potential changes is crucial for managing their own business finances and ensuring timely payments to the franchisor.