What is the range of the estimated total 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 expenditures, as detailed in Item 7 of the FDD. These costs include the initial franchise fee, travel and living expenses for the initial training program, on-site assistance fees, architectural and design fees, lease and utility deposits, leasehold improvements, rent, inventory, equipment, signage, permits and licenses, and technology fees.
For a Multi-Unit Development Agreement (MUDA), which requires the purchase of a minimum of three Southern Steer franchises, the total initial investment ranges from $1,258,618 to $2,140,618. This total includes the development fee of $91,500 for two additional Southern Steer businesses, the initial investment for the first Southern Steer business, and the initial investment for the second and third Southern Steer businesses, less the development fee. The initial investment for the second and third Southern Steer businesses ranges from $369,206 to $663,206 each.
The FDD notes that these costs are estimates based on opening and developing company-owned Southern Steer businesses. The actual costs may vary depending on factors such as the size and location of the premises, the extent of leasehold improvements required, and local market conditions. The low end of the range typically reflects a space needing limited leasehold improvements, such as an existing restaurant, while the high end assumes a 2,500 square foot premise.
Prospective franchisees should carefully review Item 7 of the FDD and consider their specific circumstances when estimating their total initial investment. It is also advisable to consult with existing Southern Steer franchisees and financial advisors to gain a more accurate understanding of the potential costs involved.