Who is responsible for the costs of construction or renovation of a Southern Steer Business?

According to Southern Steer's 2025 Franchise Disclosure Document, the franchisee is responsible for all costs associated with the construction or renovation of their Southern Steer Business. This includes expenses for architectural plans, modifications due to the location's structure, building permits, site preparation, demolition, parking lot construction, landscaping, HVAC systems, interior decor, FF&E (furniture, fixtures, and equipment), leasehold improvements, labor, and fees for architects, engineers, electricians, plumbers, general contractors, and subcontractors. The franchisee must also ensure the construction complies with all federal, state, and local laws, including the Americans with Disabilities Act.

This means a prospective Southern Steer franchisee needs to be prepared for significant upfront investment beyond the initial franchise fee. They will need to budget for all aspects of building out or renovating their location to meet Southern Steer's standards. It is crucial to obtain detailed cost estimates from contractors and architects familiar with Southern Steer's design standards to avoid unexpected expenses. The franchisee is also responsible for inspections during construction or renovation to ensure the location is being constructed or renovated in a workmanlike manner and according to Southern Steer's specifications.

Furthermore, the franchisee is responsible for securing all necessary licenses and permits required by law for the construction or renovation. Southern Steer bears no responsibility if the construction or renovation does not meet their specifications, comply with applicable laws, or is not completed in a workmanlike manner. This places the onus on the franchisee to manage the construction process effectively and ensure compliance with all requirements. This is a common arrangement in franchising, where the franchisee typically bears the build-out costs while adhering to the franchisor's standards.

In addition to initial construction or renovation, the franchisee is also responsible for remodeling costs to keep the Southern Steer Business up to date. The franchisee will make the reasonable capital expenditures necessary to extensively remodel, modernize, redecorate and renovate the Franchisee's Southern Steer Business and to replace and modernize the FF&E so that the Franchisee's Southern Steer Business will reflect the then-current image of a Southern Steer Business and conform to the Franchisor's then-current specifications. Except for repairs and maintenance, the franchisee will not be required to remodel the Southern Steer Business more than once every five years from the date of the agreement; however, there is no cap on the expenses the franchisee will have to incur relating to such required remodeling, replacement, or modernization.