When are EFT withdrawals initiated by Southern Steer for fees payable for the preceding month?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
EFT withdrawals will be initiated by the Franchisor on Wednesday of each Week for the Fees payable for the preceding Week or on the first of each Month for the Fees payable for the preceding Month (or such other day following the end of a payment period designated by the Franchisor pursuant to **Section 3.3[
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer franchisees are required to authorize electronic funds transfers (EFT) for fee payments. These EFT withdrawals are initiated either weekly or monthly, depending on the fee type and the franchisor's designation. Specifically, for fees payable for the preceding month, Southern Steer will initiate EFT withdrawals on the first of each month.
This means that as a Southern Steer franchisee, you should ensure that sufficient funds are available in your designated bank account on the first of each month to cover the fees for the previous month. These fees can include royalty fees, brand fund contributions, and other amounts due to the franchisor.
Furthermore, if a franchisee fails to provide the required gross revenue reports, Southern Steer retains the right to estimate the fees payable and withdraw the estimated amount via EFT. This highlights the importance of timely and accurate reporting to avoid potentially inaccurate fee assessments. Franchisees should maintain meticulous records and adhere to the reporting schedule to ensure correct fee calculations and avoid discrepancies.