For a Multi-Unit Developer, what is the development fee for the third Southern Steer Business that the Multi-Unit Developer is committed to develop under the Development Schedule for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ve the right to renew or extend the Term of this Agreement.
4. FEES.
- Development Fee. In consideration of Franchisor granting the Multi-Unit Developer the right to develop multiple Southern Steer Businesses in the Development Territory, Multi-Unit Developer will pay the Franchisor a development fee ("Development Fee") in an amount equal to:
- (a) The Initial Franchise Fee set out in the Initial Franchise Agreement for the first Southern Steer Business that the Multi-Unit Developer is committed to develop under the Development Schedule;
- (b) $49,500 for the second Southern Steer Business that the Multi- Unit Developer is committed to develop under the Development Schedule; and
- (c) $42,000 for the third Southern Steer Business that the Multi-Unit Developer is committed to develop under the Development Schedule.
For the avoidance of doubt, the total amount of the Development Fee is set forth in Attachment A of this Agreement.
- Development Fee Due. The Development Fee set out in Attachment A is due upon the Multi-Unit Developer's execution of this Agreement.
- Fees are Non-Refundable. The Development Fee will be nonrefundable and will be fully earned by the Franchisor when the Development Fee is paid by the Multi-Unit Developer
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 Southern Steer's 2025 Franchise Disclosure Document, a Multi-Unit Developer is required to pay a development fee for the right to develop multiple Southern Steer businesses in a designated territory. This fee is structured differently for each of the first three businesses under the Development Schedule. The development fee for the third Southern Steer Business is $42,000.
This fee is non-refundable and is considered fully earned by Southern Steer upon payment, regardless of whether the Multi-Unit Developer successfully develops all the planned Southern Steer businesses. The total amount of the Development Fee is detailed in Attachment A of the Multi-Unit Development Agreement.
It is important to note that Item 5 and 7 of the FDD, Section 3.1 of the Franchise Agreement, and Section 4.1 of the Multi-Unit Development Agreement have been amended to defer payment of the initial franchise fee and development fee until Southern Steer has met its pre-opening obligations and the franchisee has commenced business operations. Prospective franchisees should carefully review Attachment A and the full Multi-Unit Development Agreement to understand the complete scope of the development fees and payment terms.