For a Southern Steer franchise, what is included in 'Merchant Services'?

According to the 2025 Southern Steer Franchise Disclosure Document, 'Merchant Services' encompasses credit card fees and bank fees. This is a standard business expense, as most transactions today involve credit or debit cards. These fees are deducted from the gross sales to calculate net income before owner's compensation.

For example, the Sarasota location had $24,266.48 in merchant services expenses, representing 1.49% of gross sales. The Ocoee location had $24,476.95 in merchant services expenses, which was 1.57% of gross sales. Another location had $40,238.61 in merchant services expenses, representing 1.85% of gross sales.

Prospective Southern Steer franchisees should consider these costs when projecting their potential earnings. Understanding the percentage of gross sales allocated to these fees can help in accurately forecasting expenses and managing cash flow. It's also advisable to explore different merchant service providers to potentially negotiate lower rates and reduce these expenses, thereby improving the overall profitability of the Southern Steer franchise.