What is the maximum interest rate that can be charged to a Southern Steer franchisee on overdue amounts?

According to Southern Steer's 2025 Franchise Disclosure Document, if a franchisee under-reports gross revenues, they will be required to reimburse Southern Steer for the amount of fees that would have been due had the gross revenues been accurately reported. In addition to the underpaid fees, Southern Steer will charge interest each month in the amount set out in Section 3.3(c). It is important to note that the specific interest rate is detailed in Section 3.3(c) of the Franchise Agreement, which is not included in this excerpt.

Prospective franchisees should carefully review Section 3.3(c) of the Franchise Agreement to fully understand the interest rate Southern Steer can charge on under-reported gross revenues. Understanding this rate is crucial for managing finances and ensuring accurate reporting to avoid penalties.

To gain a comprehensive understanding of the potential financial implications, a prospective franchisee should ask Southern Steer's franchisor to provide a copy of Section 3.3(c) and clarify how the interest rate is calculated and applied to under-reported gross revenues. This will help in making an informed decision about investing in a Southern Steer franchise.