Does the rent estimate for a Southern Steer Business account for triple net expenses?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
t. The low end reflects a space that needs limited leasehold improvements (such as an existing restaurant space or another business similar to a Southern Steer Business) and has a smaller square footage. The high end assumes a 2,500 square foot premise.
- (6) Rent. We estimate that a typical Southern Steer Business will need between 1,800 and 2,500 square feet of space, and We estimate lease rates to range between $3,500 and $8,500 per month. There are a variety of factors that can affect lease rates, the most prominent being location and market conditions. In addition, some leases are triple net leases which require the tenant to pay rent plus all taxes, insurance and maintenance expenses, while other leases may charge a variable rent based on a percentage of Your income, with no fixed minimum rental charge. This estimate does not account for triple net expenses or other amounts beyond the base rental rate. You should investigate lease rates in Your own area. This estimate anticipates that Yo
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 rent estimate provided in Item 7 does not account for triple net expenses. The FDD specifies that the typical Southern Steer Business will need between 1,800 and 2,500 square feet of space, with lease rates ranging from $3,500 to $8,500 per month.
The document clarifies that some leases are triple net leases, where the tenant is responsible for rent plus all taxes, insurance, and maintenance expenses. Other leases may charge variable rent based on a percentage of income, with no fixed minimum rental charge. However, the rent estimate provided by Southern Steer only accounts for the base rental rate.
This means that prospective Southern Steer franchisees should factor in additional costs for taxes, insurance, and maintenance when evaluating potential locations. Franchisees should investigate lease rates in their own area to get a more accurate estimate of total rental expenses. The FDD also anticipates that the rent commencement date will start approximately 90 days after taking possession of the premises and provides for rent payment for three months. If rent is required prior to this date, expenses may be greater than indicated in the chart.