When does the minimum gross revenue requirement of $1,250,000 begin for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
e reserve the right to issue mandatory policies to coordinate such delivery programs.
Minimum Sales
Beginning the first full 12 months of operation for Your Southern Steer Business, You will be required to meet the following minimum gross revenue requirements:
| Year | Minimum Gross Revenues |
|---|---|
| First 12 months from Your start of operation ("Year | $850,000 |
| 1") | |
| Month 13 through Month 24 of Your start of | $950, |
Source: Item 12 — ITEM. 12 TERRITORY (FDD pages 35–38)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the minimum gross revenue requirement of $1,250,000 begins in month 49 and continues for the remainder of the franchise term. Prior to this, Southern Steer franchisees face a tiered minimum gross revenue requirement that escalates over the first four years of operation.
Specifically, during the first 12 months of operation, the minimum gross revenue is $850,000. This increases to $950,000 for months 13 through 24, $1,050,000 for months 25 through 36, and $1,130,000 for months 37 through 48. Failing to meet these minimum gross sales figures can lead to required additional training, increased local advertising requirements, a decreased protected area, the establishment of other Southern Steer businesses in the protected area, or even termination of the Franchise Agreement.
This escalating revenue requirement is fairly common in franchising, as it allows new franchisees time to build their business and customer base. However, prospective Southern Steer franchisees should carefully consider these requirements and develop a detailed business plan to ensure they can meet these targets. It is important to note that failure to meet these minimums can have significant consequences, as outlined in the FDD.