What is the payment procedure for fees and other amounts payable to Southern Steer via EFT?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
charges for products, materials, and services provided to You, based on Our reasonable judgment, from time to time (other than the Royalty Fee percentage). Fees paid to vendors or other suppliers may or may not be refundable depending on the vendors and suppliers. We reserve the right to require You to pay fees and other amounts due to Us via EFT, automatic withdrawal program or other similar means, as described in the Franchise Agreement and/or Brand Manual. If payments are required in this method, You must comply with Our procedures and perform all acts and deliver and execute all documents, including authorization (Attachment D to the Franchise Agreement) for direct debits from Your business bank operating account, which may be necessary to assist in or accomplish payment by this method. Under this procedure You shall authorize Us to initiate debit entries and/or credit correction entries to a designated checking or savings account for payments of fees and other amounts payable to Us and any interest that may be owed. You shall make the funds available to Us for withdrawal by EFT no later than the payment due date. If You sign the MUDA, for the second and each subsequent Franchise Agreement You sign for the Southern Steer Business, You will pay the fees at the rate specified in Our then-current form of Franchise Agreement.
- (2) Gross Revenues. Gross Revenues is defined in the Franchise Agreement as sales from all products and services sold from, thru, at or in connection with Your Southern Steer Business, whether cash, credit (regardless of collection), barter or otherwise, exclusive of applicable sales, use or service taxes. Gross Revenues includes sales from all products and services sold for on-Site or off-Site consumption, including without limitation products and services delivered to customers and products and services sold wholesale, if any. The term "Gross Revenues" also includes the proceeds received or realized by You in connection with any business interruption insurance maintained by You or for Your benefit. Excluded from the definition of Gross Revenues are sales, use or gross receipts taxes collected from customers and thereafter paid directly to the appropriate taxing authority and any bonafide refunds made to customers.
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, Southern Steer reserves the right to require franchisees to pay fees and other amounts via Electronic Funds Transfer (EFT), automatic withdrawal, or similar methods. If Southern Steer requires this payment method, franchisees must comply with their procedures, which includes executing an authorization form (Attachment D to the Franchise Agreement) for direct debits from the franchisee's business bank operating account.
Under this EFT procedure, the franchisee authorizes Southern Steer to initiate debit entries or credit correction entries to their designated checking or savings account for payments of fees, other amounts owed, and any interest. Franchisees are responsible for ensuring that funds are available for withdrawal by EFT no later than the payment due date.
Several fees, such as the royalty fee and brand fund contribution, are explicitly noted to be paid via EFT or automatic withdrawal. The royalty fee, calculated as a percentage of gross revenues, is due each Wednesday for the preceding week. The brand fund contribution, which is 1% of weekly gross revenues, is due at the same time the royalty is paid. If a franchisee fails to have sufficient funds for an EFT payment, they will incur a $100 insufficient fund fee for each occurrence.