What fees are associated with the digital menu boards and recipe/safety software for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to purchase certain interior and exterior signage, digital menu boards, uniforms for employees, thermometer, recipe/safety software, and paper products (such as napkins, plates, straws, etc.) set out in the Brand Manual for use in Your Southern Steer Business from Our designated suppliers or from suppliers We approve. We also may require that You use our designated supplier for printed marketing materials, including brochures, business cards, menu boards, and the like. You will pay an annual Signage Fee for the digital menu boards and a quarterly Recipe/Safety Fee.
Source: Item 8 — ITEM. 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–24)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to purchase digital menu boards and recipe/safety software from designated or approved suppliers. The FDD specifies that franchisees will pay an annual Signage Fee for the digital menu boards and a quarterly Recipe/Safety Fee. The exact amounts of these fees are not specified in Item 8.
This means that, beyond the initial investment in the digital menu boards and software, franchisees must budget for ongoing costs. The annual Signage Fee and quarterly Recipe/Safety Fee represent recurring expenses that will impact the franchise's profitability. It is common practice in franchising for brands to charge technology or software fees on a recurring basis.
Prospective Southern Steer franchisees should inquire about the specific amounts of the annual Signage Fee and quarterly Recipe/Safety Fee to fully understand the financial obligations associated with these required purchases. It would also be prudent to ask about any potential increases in these fees over time, as well as the consequences of failing to maintain these systems and software.