What must a Southern Steer franchisee do regarding reimbursement for supplies and inventory?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Supplies and Inventory(5) | Actual Cost. | Upon receipt of supplies or inventory. | You must reimburse Us for all purchases of goods and services We make on Your behalf. |
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, franchisees are required to reimburse Southern Steer for all fees, costs, expenses, taxes, and charges that Southern Steer pays on their behalf. This includes expenses for products, services, supplies, equipment, goods, materials, or inventory furnished to the franchisee by Southern Steer, its affiliates, or any third party, including taxing authorities, governmental agencies, vendors, contractors, and insurance carriers. The franchisee must pay the actual cost of the supplies and inventory upon receipt.
This means that as a Southern Steer franchisee, you will need to maintain sufficient funds to cover these reimbursements promptly. Failing to do so could potentially lead to late fees or other penalties as outlined in the franchise agreement. It is important to note that these costs are in addition to other fees such as the royalty fee, brand fund contribution, and technology fee.
Prospective franchisees should carefully consider these reimbursement obligations and factor them into their financial planning. Understanding the potential costs associated with supplies and inventory is crucial for managing cash flow and ensuring the financial stability of the Southern Steer business. It is also important to clarify with Southern Steer the process for ordering supplies and inventory, as well as the payment terms and methods accepted.