Is the initial franchise fee refundable under any circumstances for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You sign a Franchise Agreement for a single Southern Steer Business, You will pay Us an initial franchise fee ("Initial Franchise Fee") of $59,500. You must pay the Initial Franchise Fee in full when You sign the Franchise Agreement. The Initial Franchise Fee is fully earned by Us upon execution by You of the Franchise Agreement and is not refundable under any circumstances. The Initial Franchise Fee is uniform on all Southern Steer Business franchisees except as described below.
In the event You are using funds from your 401(k), IRA, other qualified retirement accounts or a third-party lender to purchase Your Southern Steer Business, We may allow You to enter into a Deposit Agreement (Exhibit I) and pay a deposit of $29,750 toward your Initial Franchise Fee when you sign the Deposit Agreement. You will pay the balance of the Initial Franchise Fee on the earlier of (a) receipt of funds from your 401(k), IRA, other qualified retirement accounts or third-party lender; or (b) 30 days from the effective date of the Deposit Agreement ("Payment Date"). We may agree to extend the Payment Date by an additional 30 day period at Your request if You have not received the funds from your 401(k), IRA, other qualified retirement accounts or third-party lender within the original 30-day period set out in the Deposit Agreement. You will sign the Franchise Agreement at the time You pay the Deposit. The Deposit is non-refundable once paid. and the balance of the Initial Franchise Fee will be due on the Payment Date.
Source: Item 4 — ITEM. 4 BANKRUPTCY (FDD pages 10–11)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The standard initial franchise fee for a single Southern Steer Business is $59,500, which is paid when signing the Franchise Agreement. This fee is considered fully earned by Southern Steer upon execution of the agreement and is non-refundable under any circumstances.
If a prospective franchisee is using funds from a 401(k), IRA, or a third-party lender, Southern Steer may allow them to enter into a Deposit Agreement and pay a deposit of $29,750 towards the initial franchise fee. The balance is due either upon receipt of funds or 30 days from the Deposit Agreement's effective date, with a possible 30-day extension. The deposit is also non-refundable once paid, reinforcing the non-refundable nature of the initial investment.
For those considering a Multi-Unit Development Agreement (MUDA), the development fee, which covers the rights to develop multiple Southern Steer businesses, is also non-refundable. The development fee is fully earned upon execution of the MUDA, regardless of whether the franchisee develops all the agreed-upon locations. This non-refundable policy extends to most fees paid to Southern Steer or its affiliates, as noted in Item 7 of the FDD, further emphasizing the importance of careful consideration before investing in a Southern Steer franchise.