What factors can influence the cost of leasehold improvements/construction for a Southern Steer Business Site?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 costs for leasehold improvements to a Southern Steer Business Site can vary significantly based on several factors. These factors include the location of the site, its condition, the layout and content of the site, labor and material costs, and any work provided by the landlord in the form of a tenant improvement allowance. These costs are specifically for altering the interior of a site to meet Southern Steer's image and décor requirements. The document specifies that the estimates do not cover site development or engineering work, capitalized rent, occupancy costs, purchasing unimproved land, or constructing a new Southern Steer building.
The FDD indicates that the low end of the leasehold improvement cost range reflects spaces needing limited improvements, such as existing restaurant spaces or businesses similar to Southern Steer, and those with smaller square footage. The high end of the cost range assumes a 2,500 square foot premise. For a new Southern Steer franchisee, this means that selecting a site that already has some of the necessary infrastructure (like a former restaurant) can significantly reduce the initial investment required for leasehold improvements.
Prospective franchisees should carefully evaluate potential locations, considering the existing condition and layout, to accurately estimate leasehold improvement costs. Negotiating a tenant improvement allowance with the landlord can also help offset some of these expenses. It is also important to note that the size of the location will directly impact these costs, with larger premises generally requiring a higher investment.
The initial investment table outlines an estimated range for leasehold improvements/construction between $132,000 and $275,000. This substantial range underscores the importance of thorough due diligence and careful planning when selecting a site for a Southern Steer franchise.