What costs are covered by the Relocation Fee for a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, the relocation fee covers specific costs incurred by the franchisor during the site review and approval process when a franchisee decides to move their Southern Steer business. This fee is equal to the expenses Southern Steer incurs to provide site review and approval to the franchisee. These expenses include any travel and living costs associated with the site review, as well as legal expenses required to amend the Franchise Agreement to reflect the new location.

For a prospective Southern Steer franchisee, this means that if they choose to relocate their franchise, they will be responsible for covering Southern Steer's costs for evaluating and approving the new site. These costs are directly related to the franchisor's efforts to ensure the new location meets their standards and that the legal documentation is properly updated. The franchisee will pay the Relocation Fee amount upon Southern Steer's approval of the relocation request.

It is important for franchisees to understand that the relocation fee is in addition to other costs associated with moving a business, such as construction, permits, and marketing. Additionally, the franchisee will pay Southern Steer a fee of $500 per Week during all Weeks that the Franchisee's Southern Steer Business is closed due to relocation. Franchisees should carefully consider these expenses and the potential impact on their profitability before deciding to relocate their Southern Steer business. Also, if the Franchised Location is destroyed by fire or any catastrophe, the Franchisee will relocate the Southern Steer Business as provided for in Section 1.5 (except the Franchisee will not be required to pay a Relocation Fee).

Prospective franchisees should inquire with Southern Steer about the typical range of relocation fees and the factors that can influence these costs. Understanding these potential expenses is crucial for making informed financial decisions about the franchise.