What is the initial cost for a Southern Steer franchise, and what is the cost for each additional location after the second?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
when certain performance obligations are met.
- The contract with the Customer: The parties involved are Southern Steer Franchising International, LLC and the prospective franchisees, for their financial consideration, in cash at an initial cost of $49,500, $35,000 for a second and $25,000 for each additional location. The franchisee will receive trai
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the initial franchise fee is $49,500. For a second Southern Steer location, the fee is $35,000. For each additional location after the second, the fee is $25,000. These fees grant the franchisee training, national advertising, and the use of Southern Steer's trademarks.
It is important to note that these fees are part of the "contract with the Customer" and are financial considerations in cash. Southern Steer Franchising International, LLC is obligated to certify the franchisee in accordance with their standards, assist with the design and branding of the space, and provide training in the various services offered.
The revenue from the sale of the initial franchise territory is recognized over time as Southern Steer meets its performance obligations. Specifically, revenue from the initial plan contract is recognized in the month the franchisee opens their location. This deferred recognition aligns the franchisor's revenue with the franchisee's commencement of business operations.
Prospective franchisees should be aware that the initial franchise fee covers not only the right to operate a Southern Steer business but also the support and training necessary to meet the franchisor's standards. Understanding the timing of revenue recognition can also provide insight into the franchisor's commitment to supporting the franchisee's success.