What documents are required to authorize direct debits for payments to Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to require You to pay fees and other amounts due to Us via EFT, automatic withdrawal program or other similar means, as described in the Franchise Agreement and/or Brand Manual. If payments are required in this method, You must comply with Our procedures and perform all acts and deliver and execute all documents, including authorization (Attachment D to the Franchise Agreement) for direct debits from Your business bank operating account, which may be necessary to assist in or accomplish payment by this method. Under this procedure You shall authorize Us to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to Us and any interest that may be owed. You shall make the funds available to Us for withdrawal by EFT no later than the payment due date.
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if Southern Steer requires franchisees to make payments via EFT (electronic funds transfer) or automatic withdrawal, the franchisee must comply with Southern Steer's procedures. This includes executing and delivering all necessary documents, including an authorization form (Attachment D to the Franchise Agreement), for direct debits from the franchisee's business bank operating account.
This authorization allows Southern Steer to initiate debit entries and/or credit correction entries to the franchisee's designated checking or savings account for payments of fees and any owed interest. The franchisee is responsible for ensuring that funds are available for withdrawal by EFT no later than the payment due date.
This requirement ensures that Southern Steer can efficiently collect payments from franchisees. Prospective franchisees should carefully review Attachment D to fully understand the terms and conditions of the direct debit authorization, including the scope of authorized debits, procedures for resolving errors, and termination rights. Franchisees should also be aware of the potential for insufficient fund fees if an EFT payment is denied due to insufficient funds.