What is the estimated low and high range for leasehold improvements/construction costs for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ther rights for non-compliance provided for under the Franchise Agreement. You and We will agree that these amounts are reasonable, constitute liquidated damages and are not a penalty.
ITEM. 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount Low – High | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee(1) | $59,500 | $59,500 | Lump Sum | When You Sign The Franchise Agreement | Us |
| Travel and Living Expenses for Initial Training for Two-Weeks(2) | $4,000 | $7,000 | As Incurred | As Incurred During Training | Airlines, Car Rental, Hotels, And Restaurants |
| On-Site Assistance Fee(3) | $10,000 | $10,000 | As Invoiced | As Invoiced | Us |
| Architectural, Mechanical and Electrical Design | $12,000 | $18,000 | As Arranged | As Incurred | Architect |
| Lease Deposit(4) | $5,000 | $8,000 | As Arranged | As Arranged | Landlord |
| Utility Deposits(4) | $0 | $1,000 | As Arranged | As Arranged | Utility And Phone Companies |
| Leasehold | $132,000 | $275,000 | As | As Incurred | Suppliers |
| Improvements/Construction(5) | Arranged | ||||
| Rent for Three Months(6) | $10,500 | $25,500 | As Arranged | Monthly | Landlord |
| Inventory and Supplies For Three Months(7) | $20,000 | $50,000 | Lump Sum | Upon Inventory Delivery | Suppliers |
| Furnishings, Fixtures, and Equipment(8) | $120,000 | $185,000 | As Arranged | As Incurred | Suppliers Or Us |
| Exterior and Interior Signage(9) | $8,000 | $13,000 | As Arranged | As Incurred | Suppliers |
| POS System Fee – Three Months | $2,400 | $2,400 | As Arranged | Monthly | Suppliers |
| Permits and Licenses (10) | $500 | $2,000 | Lump Sum | Before Opening | Governmental Agencies |
| Technology Fees For Three Months(11) | $1521 | $1,521 | As Arranged | Monthly | Suppliers |
| Direct Ad TV | $180 | $180 | As Arranged | Annually | Suppliers |
| Legal, Accounting Fees | $1,500 | $2,500 | As Incurred | Monthly | Suppliers |
| Recipe/Safety Fee | $105 | $105 | As Arranged | Quarterly | Supplier |
| Type of Expenditure | Amount Low – High | Method of Payment | When Due | To Whom Payment Is To Be Made | |
| Insurance for Three Months(12) | $1,500 | $2,000 | As Arranged | Monthly | Suppliers |
| Grand Opening |
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 cost for leasehold improvements and construction ranges from $132,000 to $275,000. These costs are associated with modifying the interior of the Southern Steer Business Site to meet the brand's image and décor standards. The FDD notes that these expenses do not include site development or engineering work, capitalized rent, or the purchase of land and construction of a new building.
The lower end of the estimate, $132,000, applies to spaces needing limited improvements, such as existing restaurants or similar businesses, and those with smaller square footage. The higher end, $275,000, is based on a premise of 2,500 square feet. These costs can vary significantly based on the location, condition, layout, labor and material costs, and any tenant improvement allowances provided by the landlord.
Prospective franchisees should carefully consider these factors and obtain detailed estimates for their specific location to accurately project their initial investment. It is important to note that these figures are estimates and actual costs may vary. Franchisees should also clarify with Southern Steer what specific improvements are required and whether there are any approved vendors or contractors to use for the construction work.