How does the Southern Steer franchisee pay fees other than the Royalty Fee and Brand Fund Contribution?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
this Agreement. The Franchisor may elect to collect the Royalty Fee and Brand Fund Contribution on another basis upon 30 days' prior written notice to the Franchisee specifying the payment period and payment date, which election may be rescinded or modified at any time upon 30 days' prior written notice to the Franchisee. All other Fees will be due and payable in accordance with the Designated Supplier's terms and conditions or per our invoice.
- (b) Electronic Funds Transfers. The Franchisee will, from time to time during the Initial Term of this Agreement and any Interim Period, execute such documents as the Franchisor may request to provide the Franchisee's unconditional and irrevocable authority and direction to its bank or financial institution authorizing and directing the Franchisee's bank or financial institution to pay the Franchisor directly by electronic funds transfer ("EFT") the full amount of the Fees payable by the Franchisee under this Agreement, and to charge to the account of the Franchisee. The EFT withdrawal authorizations will be in the form prescribed by the Franchisor.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are responsible for various fees beyond the Royalty Fee and Brand Fund Contribution. The method of payment depends on the specific fee. The Royalty Fee and Brand Fund Contribution are paid weekly via Electronic Funds Transfer (EFT). However, Southern Steer may choose to collect these fees on another basis with 30 days' prior written notice.
Other fees, such as the Additional Training Fee, Brand Conference Fee, Transfer Fee, Relocation Fee, Testing Fee, and others, are due and payable according to the Designated Supplier's terms and conditions or per Southern Steer's invoice. These fees cover a range of services and situations, including additional training, attendance at brand conferences, transferring the franchise, relocating the business, testing new products, correcting deficiencies, and more.
Specifically, the On-Site Assistance Fee of $10,000 is payable per the invoice terms after the franchisee completes the Initial Training Program. This fee covers the on-site assistance provided by Southern Steer for up to 10 days to help implement the Southern Steer system at the franchisee's location. Franchisees should carefully review the terms and conditions for each fee to understand when and how payment is expected.