When is the Development Fee for two additional Southern Steer businesses due?
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 two additional Southern Steer businesses, amounting to $91,500, is due when you sign the Multi-Unit Development Agreement (MUDA). This fee is a one-time, lump-sum payment.
This means that if a prospective franchisee enters into a MUDA to develop multiple Southern Steer locations, they must pay the entire $91,500 development fee upfront upon signing the agreement. This is in addition to the initial franchise fee for the first Southern Steer business.
It is important to note that this development fee is non-refundable, as stated elsewhere in the FDD. Therefore, prospective franchisees should carefully consider their plans for expansion before committing to a MUDA and paying the associated development fee. The FDD also indicates that the development fee may be higher if the franchisee elects to open more than three Southern Steer Businesses, subject to Southern Steer's approval.