When is the development fee due for a Multi-Unit Development Agreement with Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ory, and utilities.
- (15) Total. We relied on the experience of Our affiliate and their principals in opening and developing company-owned Southern Steer Businesses to compile these estimates.
YOUR ESTIMATED INITIAL INVESTMENT MULTI-UNIT DEVELOPMENT AGREEMENT
| Type of Expenditure | Amount–Low - High | Method of Payment | When Due | To Whom Payment Is To |
|---|
Source: Item 7 — ITEM. 7 ESTIMATED INITIAL INVESTMENT (FDD pages 17–21)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the development fee for a Multi-Unit Development Agreement (MUDA) is due when you sign the MUDA. The FDD specifies that for a two-unit MUDA, the development fee is a lump sum of $91,500. This fee is paid directly to Southern Steer.
Southern Steer requires a minimum purchase of three franchise units under a MUDA. The development fee compensates Southern Steer for granting the franchisee the right to develop multiple locations within a defined area. The document also clarifies that the development fee is nonrefundable.
Prospective franchisees should note that the development fee covers the right to develop additional Southern Steer businesses, but does not cover the initial franchise fee for the first Southern Steer business. The initial investment for each subsequent franchise purchased under the MUDA does not include an Initial Franchise Fee or Development Fee. The total initial investment includes the development fee, the initial franchise fee, and the estimated costs to open and operate the first Southern Steer business and each additional business.
It's important for potential multi-unit franchisees to carefully consider the financial commitment and development schedule before signing a MUDA with Southern Steer, as the development fee is nonrefundable.