Do the leasehold improvement estimates for a Southern Steer Business include costs for purchasing unimproved land and constructing a building?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
In most cases You will need to alter the interior of Your Southern Steer Business Site before You open.
These estimated costs are to build out an existing building or space to meet the image and décor requirements for Southern Steer Business.
Costs for leasehold improvements will vary greatly, depending upon the location, condition, layout and content of the Site, labor and material costs, and landlord provided work (tenant improvement allowance).
The estimates do
not include the costs of any necessary Site development or Site engineering work, nor do they include capitalized costs of rent or other occupancy costs, over either the life of the lease or the life of Your investment.
In addition, these amounts do not reflect costs for the purchase of unimproved land and construction of a Southern Steer Business building, which also would result in a significantly greater initial investment.
The low end reflects a space that needs limited leasehold improvements (such as an existing restaurant space or another business similar to a Southern Steer Business) and has a smaller square footage.
The high end assumes a 2,500 square foot premise.
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 estimated costs for leasehold improvements do not include the costs of purchasing unimproved land and constructing a new building. The FDD specifies that the estimated costs, which range from $132,000 to $275,000, are intended to cover the expenses of altering the interior of an existing building or space to meet Southern Steer's image and décor requirements.
The document explicitly states that the estimates do not include expenses for site development or engineering work, capitalized rent or occupancy costs, or the purchase of unimproved land and construction of a Southern Steer Business building. The lower end of the estimate range is for spaces needing limited leasehold improvements, such as existing restaurants or similar businesses, while the higher end assumes a 2,500 square foot premise.
This means a prospective Southern Steer franchisee should anticipate a significantly greater initial investment if they plan to purchase unimproved land and construct a building from the ground up. The provided estimates only apply to modifying an existing structure to fit the Southern Steer brand standards. Franchisees should carefully consider these additional costs and consult with Southern Steer to understand the full financial implications of new construction versus renovating an existing space.