What is the range of the estimated initial investment for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ory, and utilities.
- (15) Total. We relied on the experience of Our affiliate and their principals in opening and developing company-owned Southern Steer Businesses to compile these estimates.
YOUR ESTIMATED INITIAL INVESTMENT MULTI-UNIT DEVELOPMENT AGREEMENT
| Type of Expenditure | Amount–Low - High | Method of Payment | When Due | To Whom Payment Is To | |
|---|---|---|---|---|---|
| Be Made | |||||
| Development Fee for Two | $91,500 | $91,500 | Lump Sum | When You | Us |
| Additional Southern Steer | sign the | ||||
| Businesses(1) | MUDA | ||||
| Initial Investment for First | $428,706 | $722,706 | As indicated | As indicated | As indicated in |
| Southern Steer Business(2) | in Item 7 chart above | in Item 7 chart above | Item 7 chart above | ||
| Initial Investment for the Second | $369,206 | $663,206 | As indicated | As indicated | As indicated in |
| Southern Steer Business Less | in Item 7 | in Item 7 | Item 7 chart above | ||
| Development Fe |
Source: Item 7 — ITEM. 7 ESTIMATED INITIAL INVESTMENT (FDD pages 17–21)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial investment for the first Southern Steer business ranges from $428,706 to $722,706. This investment covers various expenses, such as the initial franchise fee, travel and living expenses for initial training, on-site assistance fees, architectural and design costs, lease and utility deposits, leasehold improvements, rent, inventory, signage, permits and licenses, and technology fees. These costs are detailed in the Item 7 chart.
Prospective franchisees should note that these estimates are based on a new Southern Steer business with a footprint of approximately 1,800 to 2,300 square feet. Costs may be higher if the franchisee operates from a larger premises. The low end of the range reflects a space needing limited leasehold improvements, such as an existing restaurant space, while the high end assumes a 2,500 square foot premise. The estimates do not include freight, tax, or installation costs, and can vary depending on the location and size of the business.
Furthermore, the FDD specifies that franchisees must spend between $15,000 and $20,000 on grand opening marketing within the first 90 days of operations. The initial investment also includes additional funds to cover expenses for the initial three-month start-up phase, such as payroll, benefits, administrative costs, janitorial services, maintenance, additional inventory, and utilities. These estimates were compiled based on the experience of Southern Steer's affiliate and their principals in opening and developing company-owned businesses.
For franchisees considering a Multi-Unit Development Agreement (MUDA), the initial investment for the first Southern Steer business remains in the $428,706 to $722,706 range. However, the Development Fee for two additional Southern Steer businesses is $91,500. The total estimated investment for a MUDA, encompassing the Development Fee and the initial investments for three Southern Steer businesses, ranges from $1,258,618 to $2,140,618.