For a Southern Steer franchise, what do 'Merchant Services' include?

According to the 2025 Southern Steer Franchise Disclosure Document, 'Merchant Services' include credit card fees and bank fees. This is relevant to prospective franchisees as these fees are part of the operating expenses that will impact the overall profitability of the business. Understanding what is included in merchant services helps in accurately forecasting expenses.

Specifically, the financial performance representations in Item 19 of the FDD provide data on merchant services expenses for existing Southern Steer locations. For example, the Sarasota location had $24,266.48 in merchant services expenses, representing 1.49% of gross sales, while the Ocoee location had $24,476.95 in merchant services expenses, representing 1.57% of gross sales. Another location had $40,238.61 in merchant services expenses, representing 1.85% of gross sales.

These figures give potential franchisees an idea of the range of expenses they might incur for these services. It's important to note that these costs can vary based on factors such as transaction volume, the mix of credit vs. cash sales, and the specific rates negotiated with credit card processors and banks. Franchisees should consider these factors when projecting their own operating expenses and profitability.