What costs are included when a Southern Steer franchisee must reimburse for supplies and inventory?

According to Southern Steer's 2025 Franchise Disclosure Document, franchisees must reimburse Southern Steer for all expenses the franchisor pays on their behalf for products, services, supplies, equipment, goods, materials, or inventory. This includes payments made to Southern Steer, its affiliates, or any third party. The reimbursement also covers fees, costs, expenses, taxes, and charges paid to taxing authorities, governmental agencies, vendors, contractors, and insurance carriers.

The cost for supplies and inventory is the actual cost, and payment is due upon receipt of the supplies or inventory. This means a Southern Steer franchisee needs to have a system in place to promptly pay for these items as they are received to maintain a good standing with the franchisor and its suppliers.

It is important to note that Southern Steer has the right to increase any fees due from the franchisee, as well as any charges for products, materials, and services provided. This is based on their reasonable judgment, with the exception of the Royalty Fee percentage. Therefore, franchisees should be prepared for potential increases in the cost of supplies and inventory during the term of their Franchise Agreement.