What is the purpose of the Deposit Agreement for a 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 serves to allow a prospective franchisee to continue the process of obtaining a license to operate a Southern Steer Business by paying a deposit towards the Initial Franchise Fee. The deposit amount is $29,750, and upon execution of the Franchise Agreement, this deposit becomes immediately non-refundable.
The deposit is deemed earned by Southern Steer for processing the Franchise Agreement and for services performed following the effective date of the Franchise Agreement. Southern Steer's obligations regarding the deposit are those of a debtor, not a trustee, and they may maintain the deposit in a separate account or commingle it with general funds, without being required to pay interest on it.
The franchisee is required to sign the Franchise Agreement when signing the Deposit Agreement and must pay the balance of the Initial Franchisee Fee on the earlier of (a) receipt of their Funds; or (b) 30 days from the Effective Date of this Agreement. If the franchisee cannot obtain the balance of funds 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 continues.