What other fees can Southern Steer assess for late payments?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ation to the Franchisee.
- 14.5. Payment of Audit Costs. If an audit establishes that the Franchisee's Gross Revenues were understated by more than 2% in any payment period or fiscal year, then the Franchisee will, within 10 days after receipt of an invoice, pay the Franchisor for all costs and expenses incurred for the audit of the Franchisee's Financial Records (including employee Salaries and Benefits, Travel Expenses, and audit fees).
- 14.6. Under-Reporting. If it is found that the Franchisee under-reported Gross Revenues, the Franchisee will reimburse the Franchisor of the amount of the Fees that would have been due had Gross Revenues been reported accurately, plus Interest each month in the amount set out in Section 3.3(c).
- 14.7. Late Reporting. If the Franchisee fails to send the Franchisor any report that is due on a weekly basis, the Franchisor may charge the Franchisee, to the extent permitted by applicable law, its then current late report fee. Currently, the late report fee is $100 for each Week the reports are late. If Franchisee fails to send the Franchisor any report that is due on a monthly basis, annual basis, or quarterly basis, the Franchisor may charge the Franchisee, to the extent permitted by law, its then current late report fee. Currently, the late report fee is $100 for each month the report is late.
- 14.8. Disclosure.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if a franchisee under-reports gross revenues, they will be required to reimburse Southern Steer the amount of fees that would have been due had the gross revenues been reported accurately. In addition to the under-reported fees, Southern Steer will charge interest each month as outlined in Section 3.3(c).
Furthermore, Southern Steer may charge a late report fee if a franchisee fails to submit reports on time. The late report fee is currently $100 for each week that weekly reports are late. For monthly, annual, or quarterly reports, the late fee is also $100 for each month the report is late. These fees are applied to the extent permitted by applicable law.
If a franchisee fails to pay any fees, taxes, rents, or any other monetary obligations on time, they have a five-business-day cure period to correct the breach by making full payment to Southern Steer, along with interest and late charges as detailed in Section 3.3(c).