What is the name of the deposit agreement related to the Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
b Threat | 127 | | 6.6. After the Emergency Has Passed | 128 | | 6.6.1. Emergency Care | 128 | | 6.6.2. Incident Reports | 129 | | 7. Data Security | 130 |
Total Number of Pages: 130
Exhibit I Deposit Agreement
DEPOSIT AGREEMENT
| by | This Deposit Agreement ("Agreement") is made as of ("Effective Date") and between Southern Steer Franchising International, LLC ("Franchisor"), and ("you", "your", "I" or "my") whose principal business address is |
|---|---|
| RECITAL | |
| I understand that my application for the grant of a franchise to operate a Southern Steer | |
| Business in the general area of, which was submitted on, has | |
| been approved. | |
| I acknowledge that I am using funds for the Initial Franchise Fee from my 401K, IRA other | |
| qualified retirement account roll-over or third-party lender ("Funds"). The Funds will be available | |
| on or before | |
| To continue the process of obtaining a license to operate a Southern Steer Business, I am | |
| paying a Deposit toward the Initial Franchise Fee in accordance with this Agreement. | |
| In consideration of the foregoing and the covenants and consideration below, Franchisor | |
| and I agree as follows: | |
| AGREEMENT | |
| 1. | Deposit. Upon execution of this Agreement, I will pay Franchisor a deposit in the amount |
| of $29,750 ("Deposit"). The full Deposit will be applied to the Initial Franchise Fee. Upon | |
| execution of the Franchise Agreement, my Deposit will be immediately non-refundable. | |
| The Deposit will be deemed earned by Franchisor for processing of my Franchise | |
| Agreement and for services performed following the effective date of my Franchise | |
| Agreement. Franchisor's obligation with respect to my Deposit are those of a debtor and | |
| not a trustee. Franchisor may maintain my Deposit in a separate account or comingle my | |
| Deposit with general funds. Franchisor will not be required to pay me interest on my | |
| Deposit. | |
| 2. | Time for Signing Franchise Agreement. I acknowledge that I am required to sign the |
| Franchise Agreement at the time I sign this Deposit Agreement. I further acknowledge that | |
| I am required to pay the balance of the Initial Franchisee Fee in the amount of | |
| $ on the earlier of (a) receipt of my Funds; or (b) 30 days from | |
| the Effective Date of this Agreement ("Due Date"). If I am unable to obtain the balance of | |
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 deposit agreement is referred to as "This Deposit Agreement". The agreement is made between Southern Steer Franchising International, LLC, as the Franchisor, and the prospective franchisee.
The deposit secures the prospective franchisee's application for a Southern Steer franchise in a specific area. The document indicates that the franchisee may be using funds from a 401K, IRA, or a third-party lender to cover the initial franchise fee. By signing the agreement, the franchisee agrees to pay a deposit towards the initial franchise fee.
The agreement outlines that upon execution, the franchisee will pay a deposit of $29,750, which will be applied to the initial franchise fee. Once the Franchise Agreement is executed, the deposit becomes non-refundable. The deposit is deemed earned by Southern Steer for processing the Franchise Agreement and for services performed after the agreement's effective date. Southern Steer has the right to either keep the deposit in a separate account or combine it with its general funds, and they are not obligated to pay any interest on the deposit.
The document also states that the franchisee is required to sign the Franchise Agreement when signing the Deposit Agreement and must pay the remaining balance of the initial franchisee fee by the earlier of receiving their funds or 30 days from the Deposit Agreement's effective date. If the franchisee cannot obtain the balance by the due date, they must notify Southern Steer, who may extend the due date by an additional 30 days if the delay in receiving funds is justified.