If signing a MUDA for Southern Steer, is the Development Fee refundable?

According to Southern Steer's 2025 Franchise Disclosure Document, the Development Fee associated with a Multi-Unit Development Agreement (MUDA) is nonrefundable. The MUDA requires the purchase of a minimum of three Southern Steer Business franchises. When signing a MUDA, the franchisee must pay the nonrefundable Initial Franchise Fee for the first Southern Steer Business, along with a nonrefundable Development Fee that is based on the number of additional Southern Steer Businesses the franchisee agrees to open. The Development Fee for two additional Southern Steer Businesses is $91,500, payable in a lump sum when the MUDA is signed.

This nonrefundable policy means that if a franchisee's plans change or they are unable to open the agreed-upon number of Southern Steer locations, they will not receive a refund of the Development Fee. This is a significant financial commitment and risk that prospective multi-unit franchisees should carefully consider. It is important to conduct thorough due diligence and ensure sufficient capital and resources are available to fulfill the development agreement.

In addition, all expenditures paid to Southern Steer or its affiliates are nonrefundable under any circumstances once paid. Fees paid to vendors, suppliers, or other third parties may or may not be refundable depending on their policies or arrangements. This reinforces the importance of carefully evaluating all financial commitments and understanding the refund policies of all parties involved in the franchise process.