When is the initial franchise fee due for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ther rights for non-compliance provided for under the Franchise Agreement. You and We will agree that these amounts are reasonable, constitute liquidated damages and are not a penalty.
ITEM. 7 ESTIMATED INITIAL INVESTMENT
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount Low – High | Method of Payment | When Due | To Whom Payment Is To Be Made | |
|---|---|---|---|---|---|
| Initial Franchise Fee(1) | $59,500 | $59,500 | Lump Sum | When You Sign The Franchise Agreement |
Source: Item 7 — ITEM. 7 ESTIMATED INITIAL INVESTMENT (FDD pages 17–21)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial franchise fee, ranging from $59,500 to $59,500, is due in a lump sum when you sign the Franchise Agreement. This fee is paid directly to Southern Steer. For those purchasing a Southern Steer Business from a pre-existing franchisee, a transfer fee of $10,000 plus any initial training fee will be charged in place of the initial franchise fee.
Prospective franchisees should note that this fee is nonrefundable once paid, regardless of circumstances. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, market analysis, and legal documentation. Understanding the timing and nonrefundable nature of this fee is crucial for financial planning.
For those considering a Multi-Unit Development Agreement (MUDA), the initial franchise fee applies to the first Southern Steer Business. Subsequent franchises purchased under the MUDA do not include an initial franchise fee, but a development fee is required at the time of entering the MUDA. This structure incentivizes multi-unit development while ensuring Southern Steer is compensated for each location.
It is important for potential franchisees to carefully review Item 5 of the FDD, as referenced in Item 7, for a more detailed description of the initial franchise fee and any related obligations. Understanding these details will help ensure a smooth and informed entry into the Southern Steer franchise system.