When is payment due for supplies and inventory purchased from Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Supplies and Inventory(5) | Actual Cost. | Upon receipt of supplies or inventory. | You must reimburse Us for all purchases of goods and services We make on Your behalf. |
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees must pay the actual cost for supplies and inventory upon receipt. Specifically, franchisees are required to reimburse Southern Steer for all fees, costs, expenses, taxes, and charges that Southern Steer pays on their behalf. This includes products, services, supplies, equipment, goods, materials, or inventory provided by Southern Steer, its affiliates, or any third party, such as taxing authorities, governmental agencies, vendors, contractors, and insurance carriers.
This means that a Southern Steer franchisee should be prepared to make immediate payments for supplies and inventory as soon as they are received. This could impact the franchisee's cash flow management, as they need to have funds readily available to cover these costs. It is important for prospective franchisees to factor in these immediate payment terms when projecting their operating expenses and managing their finances.
Furthermore, the FDD specifies that all fees and costs payable to Southern Steer, its affiliates, or designees are non-refundable unless otherwise noted. This reinforces the importance of careful planning and financial preparedness, as franchisees will not be able to recover these costs once paid. Franchisees should maintain open communication with Southern Steer to understand the expected costs of supplies and inventory to avoid any surprises and ensure smooth business operations.