Does the Southern Steer FDD include a Deposit Agreement as an exhibit?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Issuance Date: January 31, 2025. I received a disclosure document dated January 31, 2025, that included the following Exhibits:
Exhibit A: Franchise Agreement and Attachments Attachment A Attachment B Attachment C Personal Guaranty Attachment D Attachment E Attachment F Attachment G Attachment H Attachment I-1 Attachment I-2 Attachment J Franchisee Questionnaire Site, Protected Area, Required Opening Date Statement of Ownership Authorization to Honor Electronic Funds Transfer Conditional Assignment of Telephone Listing, Social Media and Directory Listing Agreement Landlord's Consent to Assignment Lease Form of Lease Addendum State Specific Addendum Non-Competition and Non-Disclosure Agreement (Owners) Non-Competition and Non-Disclosure Agreement (Management Staff) Exhibit B: Financial Statements Exhibit C: List of Current and Former Franchisees, Company-Owned Southern Steer Businesses and Franchise Agreements Signed But Not Opened Exhibit D: Multi-Unit Development Agreement Exhibit E: Sample Release Exhibit F: State Agency/Agents for Service of Process Exhibit G: State-Specific Addendum Exhibit H: Brand Manual Table of Contents Exhibit I: Deposit Agreement Exhibit J: State Effective Dates and Receipt
Source: Item 21 — EXHIBIT B: FINANCIAL STATEMENTS (FDD page 6)
What This Means (2025 FDD)
Yes, according to the 2025 Southern Steer Franchise Disclosure Document, a Deposit Agreement is included as Exhibit I. This agreement outlines the terms and conditions under which a prospective franchisee may pay a deposit towards the initial franchise fee.
According to the FDD, the Deposit Agreement specifies that upon execution of the agreement, the franchisee will pay Southern Steer a deposit of $29,750. This deposit will be applied to the initial franchise fee. Upon execution of the Franchise Agreement, the deposit becomes immediately non-refundable. The deposit is deemed earned by Southern Steer for processing the Franchise Agreement and for services performed following the effective date of the Franchise Agreement.
The Deposit Agreement also states that the franchisee is required to sign the Franchise Agreement at the time of signing the Deposit Agreement. The franchisee is required to pay the balance of the initial franchisee fee on the earlier of (a) receipt of funds from a 401K, IRA, or third-party lender; or (b) 30 days from the effective date of the agreement. If the franchisee is unable to obtain the balance of funds by the due date, they must notify Southern Steer, who may extend the due date by an additional 30 days if the delay is due to delayed receipt of funds.
The Deposit Agreement also clarifies that the deposit is non-refundable, and Southern Steer will terminate the Franchise Agreement if the franchisee fails to pay the balance of the initial franchise fee by the due date. The franchisee acknowledges receiving Southern Steer's Franchise Disclosure Document more than 14 days prior to the execution of the Deposit Agreement. These terms are legally binding and governed by Florida law.