What conditions must be met for the Southern Steer Deposit Agreement to be valid?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
b Threat | 127 | | 6.6. After the Emergency Has Passed | 128 | | 6.6.1. Emergency Care | 128 | | 6.6.2. Incident Reports | 129 | | 7. Data Security | 130 |
Total Number of Pages: 130
Exhibit I Deposit Agreement
DEPOSIT AGREEMENT
| 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's obligation with respect to my Deposit are those of a debtor and | |
| not a trustee. Franchisor may maintain my Deposit in a separate account or comingle my | |
| Deposit with general funds. Franchisor will not be required to pay me interest on my | |
| Deposit. | |
| 2. | Time for Signing Franchise Agreement. I acknowledge that I am required to sign the |
| Franchise Agreement at the time I sign this Deposit Agreement. I further acknowledge that | |
| I am required to pay the balance of the Initial Franchisee Fee in the amount of | |
| $ on the earlier of (a) receipt of my Funds; or (b) 30 days from | |
| the Effective Date of this Agreement ("Due Date"). If I am unable to obtain the balance of | |
Source: Item 21 — EXHIBIT B: FINANCIAL STATEMENTS (FDD page 6)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the Deposit Agreement is made as of the Effective Date between Southern Steer Franchising International, LLC and the prospective franchisee. The applicant's application for a franchise to operate a Southern Steer Business must be approved. The franchisee must acknowledge that they are using funds from a 401K, IRA, other qualified retirement account roll-over or third-party lender. To continue the process of obtaining a license to operate a Southern Steer Business, the franchisee must pay a deposit toward the Initial Franchise Fee in accordance with the Deposit Agreement.
Upon execution of the Deposit Agreement, the franchisee will pay Southern Steer a deposit of $29,750. The full deposit will be applied to the Initial Franchise Fee. The franchisee is required to sign the Franchise Agreement at the time they sign the Deposit Agreement. The franchisee is required to pay the balance of the Initial Franchisee Fee on the earlier of (a) receipt of funds; or (b) 30 days from the Effective Date of the Deposit Agreement.
If the franchisee is unable to obtain the balance of funds on or before the Due Date, they must notify Southern Steer. Southern Steer may, but is not required to, extend the Due Date at the franchisee's written request if receipt of the Funds is delayed by an additional 30 days from period specified in Section 2(b) hereof.