What is the estimated monthly lease rate range for a Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
t. 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. In addition, some leases are triple net leases which require the tenant to pay rent plus all taxes, insurance and maintenance expenses, while other leases may charge a variable rent based on a percentage of Your income, with no fixed minimum rental charge. This estimate does not account for triple net expenses or other amounts beyond the base rental rate. You should investigate lease rates in Your own area. This estimate anticipates that Yo
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 monthly lease rate for a typical Southern Steer Business ranges from $3,500 to $8,500. The document notes that this estimate is based on a space between 1,800 and 2,500 square feet. However, this figure does not account for additional expenses such as taxes, insurance, and maintenance, which may be required in triple net leases.
Location and market conditions are primary factors influencing lease rates. The FDD advises prospective franchisees to investigate lease rates in their specific area to get a more accurate estimate. The estimate also anticipates that the rent commencement date will begin approximately 90 days after the franchisee takes possession of the premises, and it provides for three months of rent payments.
It's important to note that if rent payments are required before this 90-day period, the franchisee's expenses may exceed the amounts listed in the FDD. Therefore, franchisees should carefully consider these factors and conduct thorough research to determine realistic lease costs for their Southern Steer Business.