Are fees and costs payable to Southern Steer, its affiliates, or designees generally refundable?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Except where otherwise noted, all fees and costs payable to Us, Our affiliates or Our designees are non-refundable. We may, but are not required to, reduce the Royalty for a period of time for up to the first five qualified Franchisees that acquire a Southern Steer Business. The amount the Royalty may be reduced and the time period the Royalty may be reduced by will depend on a variety of factors, including a Franchisee's business experience and net worth. We have the right to increase any fees due from You, as well as any charges for products, materials, and services provided to You, based on Our reasonable judgment, from time to time (other than the Royalty Fee percentage). Fees paid to vendors or other suppliers may or may not be refundable depending on the vendors and suppliers.
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, fees and costs payable to Southern Steer, its affiliates, or designees are generally non-refundable, unless specifically noted otherwise. This means that a prospective franchisee should carefully consider all fees outlined in the FDD and other agreements, as these payments are typically not returned once paid. This policy is fairly standard in the franchise industry, as these fees often cover services already rendered or costs already incurred by the franchisor.
There are numerous fees that a Southern Steer franchisee will encounter, as detailed in Item 6 of the FDD. These include the royalty fee (6% of annual Gross Revenues from $1.00 to $1,000,000; 5% from $1,000,001 to $2,000,000; and 4% from $2,000,001 and greater), brand fund contribution (1% of weekly Gross Revenues), technology fee (currently $507 per month), POS system fee (currently $800 per month), and various other fees for training, transfers, relocation, audits, and more. Given the non-refundable nature of most fees, it is crucial for franchisees to fully understand the payment schedule and amounts due for each of these categories.
While the FDD states that fees paid to vendors or other suppliers may or may not be refundable, depending on the vendor's policies, franchisees should clarify the refund policies of specific vendors with Southern Steer during their due diligence. Understanding which fees are potentially refundable and under what conditions can help franchisees manage their financial risks and expectations. It is also important to note that Southern Steer reserves the right to increase fees (excluding the Royalty Fee percentage) and may require payments via EFT or automatic withdrawal, so franchisees should be prepared for these possibilities.