What is the estimated low-end initial investment for the first Southern Steer business?
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 | |
|---|---|---|---|---|---|
| Be Made | |||||
| Development Fee for Two | $91,500 | $91,500 | Lump Sum | When You | Us |
| Additional Southern Steer | sign the | ||||
| Businesses(1) | MUDA | ||||
| Initial Investment for First | $428,706 | $722,706 | As indicated | As indicated | As indicated in |
| Southern Steer Business(2) | in Item 7 chart above | in Item 7 chart above | Item 7 chart above | ||
| Initial Investment for the Second | $369,206 | $663,206 | As indicated | As indicated | As indicated in |
| Southern Steer Business Less | in Item 7 | in Item 7 | Item 7 chart above | ||
| Development Fe |
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 low-end initial investment for the first Southern Steer business is $428,706. This figure is part of a range, with the high-end investment estimated at $722,706. These costs encompass various expenditures necessary to start the business.
The initial investment covers a multitude of expenses, including the initial franchise fee of $59,500, travel and living expenses for the initial two-week training program which ranges from $4,000 to $7,000, and an on-site assistance fee of $10,000. Further costs include architectural, mechanical, and electrical design estimated between $12,000 and $18,000, a lease deposit of $5,000 to $8,000, and utility deposits that can reach up to $1,000. Leasehold improvements and construction are a significant expense, ranging from $132,000 to $275,000.
Additional costs include rent for three months, estimated between $10,500 and $25,500, and inventory and supplies for three months, ranging from $20,000 to $50,000. Furnishings, fixtures, and equipment are estimated to cost between $120,000 and $185,000, while exterior and interior signage ranges from $8,000 to $13,000. The POS system fee for three months is $2,400, and permits and licenses range from $500 to $2,000. Technology fees for three months are $1,521, and there are also expenses for direct ad TV ($180), legal and accounting fees ($1,500 to $2,500), and a recipe/safety fee ($105).
Prospective franchisees should note that these are estimates and actual costs may vary. Factors such as location, the condition of the premises, and specific supplier arrangements can influence the final investment amount. It is crucial to carefully review all components of the initial investment and conduct thorough due diligence to understand the potential financial commitment involved in opening a Southern Steer franchise.