What do the estimated costs for leasehold improvements for a Southern Steer Business cover?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
e required to pay first and last month's rent. You may also be required to pay deposits for Your utilities. The actual amount of these deposits will vary depending on local landlord and utility practices and other factors.
(5) Leasehold Improvements/Construction. In most cases You will need to alter the interior of Your Southern Steer Business Site before You open. These estimated costs are to build out an existing building or space to meet the image and décor requirements for Southern Steer Business. Costs for leasehold improvements will vary greatly, depending upon the location, condition, layout and content of the Site, labor and material costs, and landlord provided work (tenant improvement allowance). The estimates do not include the costs of any necessary Site development or Site engineering work, nor do they include capitalized costs of rent or other occupancy costs, over either the life of the lease or the life of Your investment. In addition, these amounts do not reflect costs for the purchase of unimproved land and construction of a Southern Steer Business building, which also would result in a significantly greater initial investment. The low end reflects a space that needs limited leasehold improvements (such as an existing restaurant space or another business similar to a Southern Steer Business) and has a smaller square footage. The high end assumes a 2,500 square foot premise.
(6) Rent. We estimate that a typical Southern Steer Business will need between 1,800 and 2,500 square feet of space, and We estimate lease rates to range between $3,500 and $8,500 per month. There are a variety of factors that can affect lease rates, the most prominent being location and market conditions.
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 estimated costs for leasehold improvements, which range from $132,000 to $275,000, cover the expenses to build out an existing building or space to meet the image and décor requirements for a Southern Steer Business. These costs can vary significantly based on factors such as the location, condition, layout, content of the site, labor and material costs, and any tenant improvement allowance provided by the landlord.
The FDD specifies that these estimates do not include costs for site development, site engineering work, capitalized rent, or other occupancy costs over the lease term or the life of the investment. Additionally, the estimates do not cover the purchase of unimproved land or the construction of a new Southern Steer building, which would substantially increase the initial investment.
The lower end of the estimate applies to spaces needing limited leasehold improvements, such as existing restaurant spaces or businesses similar to Southern Steer, and with smaller square footage. The higher end of the estimate is based on a 2,500 square foot premise. These costs are payable as arranged and incurred to suppliers.