What is the maximum Insufficient Funds Fee that Southern Steer can charge a franchisee in Minnesota?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 6 of the FDD and Section 3.3(c) of the Franchise Agreement are hereby amended to limit the Insufficient Funds Fee to $30 per occurrence pursuant to Minnesota Statute 604.113.
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 maximum Insufficient Funds Fee that Southern Steer can charge a franchisee in Minnesota is $30 per occurrence. This amendment to Item 6 of the FDD and Section 3.3(c) of the Franchise Agreement is made to comply with Minnesota Statute 604.113. This means that if a franchisee's payment is returned due to insufficient funds, Southern Steer will not charge more than $30 for that failed payment in the state of Minnesota. This is a state-specific regulation to protect franchisees. Franchise agreements often include clauses about fees for various situations, and it's important for franchisees to be aware of these potential costs. State laws can modify these terms, as is the case here, to provide additional protection to franchisees within that state.