If I sign a Deposit Agreement with Southern Steer, what are my obligations?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
b Threat | 127 | | 6.6. After the Emergency Has Passed | 128 | | 6.6.1. Emergency Care | 128 | | 6.6.2. Incident Reports | 129 | | 7. Data Security | 130 |
Total Number of Pages: 130
Exhibit I Deposit Agreement
DEPOSIT AGREEMENT
| by | This Deposit Agreement ("Agreement") is made as of ("Effective Date") and between Southern Steer Franchising International, LLC ("Franchisor"), and ("you", "your", "I" or "my") whose principal business address is |
|---|---|
| RECITAL | |
| I understand that my application for the grant of a franchise to operate a Southern Steer | |
| Business in the general area of, which was submitted on, has | |
| been approved. | |
| I acknowledge that I am using funds for the Initial Franchise Fee from my 401K, IRA other | |
| qualified retirement account roll-over or third-party lender ("Funds"). The Funds will be available | |
| on or before | |
| To continue the process of obtaining a license to operate a Southern Steer Business, I am | |
| paying a Deposit toward the Initial Franchise Fee in accordance with this Agreement. | |
| In consideration of the foregoing and the covenants and consideration below, Franchisor | |
| and I agree as follows: | |
| AGREEMENT | |
| 1. | Deposit. Upon execution of this Agreement, I will pay Franchisor a deposit in the amount |
| of $29,750 ("Deposit"). The full Deposit will be applied to the Initial Franchise Fee. Upon | |
| execution of the Franchise Agreement, my Deposit will be immediately non-refundable. | |
| The Deposit will be deemed earned by Franchisor for processing of my Franchise | |
| Agreement and for services performed following the effective date of my Franchise | |
| Agreement. Franchisor's obligation with respect to my Deposit are those of a debtor and | |
| not a trustee. Franchisor may maintain my Deposit in a separate account or comingle my | |
| Deposit with general funds. Franchisor will not be required to pay me interest on my | |
| Deposit. | |
| 2. | Time for Signing Franchise Agreement. I acknowledge that I am required to sign the |
| Franchise Agreement at the time I sign this Deposit Agreement. I further acknowledge that | |
| I am required to pay the balance of the Initial Franchisee Fee in the amount of | |
| $ on the earlier of (a) receipt of my Funds; or (b) 30 days from | |
| the Effective Date of this Agreement ("Due Date"). If I am unable to obtain the balance of | |
| my Funds on or before the Due Date, I will notify Franchisor. Franchisor may, but is not | |
| required to, extend the Due Date at my written request if my receipt of the Funds is delayed | |
| by an additional 30 days from period specified in Section 2(b) hereof. |
-
- Non-Refundable Deposit; Termination of Franchise Agreement. I acknowledge that my Deposit is non-refundable. If I decide not to obtain a license to operate a Southern Steer Business Franchisor will not refund my Deposit. I further acknowledge that Franchisor will terminate the Franchise Agreement if I fail to pay the balance of the Initial Franchise Fee by the Due Date.
-
- Receipt of Franchise Agreement FDD. I acknowledge that I received Franchisor's Franchise Disclose Document more than 14 days prior to the execution of this Deposit Agreement.
5. Miscellaneous.
- a. Governing Law.
Source: Item 21 — EXHIBIT B: FINANCIAL STATEMENTS (FDD page 6)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, signing a Deposit Agreement requires you to pay a deposit of $29,750. This deposit will be applied to the initial franchise fee. Upon signing the Franchise Agreement, the deposit becomes immediately non-refundable. Southern Steer considers the deposit earned for processing the Franchise Agreement and for services performed after the agreement's effective date.
You are obligated to sign the Franchise Agreement when you sign the Deposit Agreement. You must also pay the remaining balance of the initial franchisee fee by the earlier of (a) receipt of your funds from a 401(k), IRA, other qualified retirement account roll-over or third-party lender or (b) 30 days from the Deposit Agreement's effective date. If you cannot obtain the funds by this due date, you must notify Southern Steer, which may extend the due date by an additional 30 days if the delay is due to delayed receipt of funds.
If you decide not to obtain a license to operate a Southern Steer Business, the deposit will not be refunded. Failure to pay the balance of the initial franchise fee by the due date will result in the termination of the Franchise Agreement. You also acknowledge that you received Southern Steer's Franchise Disclosure Document more than 14 days before signing the Deposit Agreement.