Who is responsible for fees imposed by the bank in connection with a Southern Steer franchisee's EFT payments?

According to Southern Steer's 2025 Franchise Disclosure Document, the franchisee is responsible for all fees imposed by their bank or financial institution related to EFT payments of fees to Southern Steer. This means that any charges the franchisee's bank levies for processing the electronic funds transfers will be borne by the franchisee, not Southern Steer.

This is a fairly standard practice in franchising, as the franchisee chooses their own bank and account. Southern Steer requires franchisees to authorize electronic fund transfers (EFT) for fee payments. Franchisees must maintain sufficient funds in their account to cover these payments. Failure to do so, or closing the designated account without providing new account information, constitutes a default under the Franchise Agreement.

In addition to covering their bank's EFT fees, franchisees are also responsible for interest, late charges, and insufficient fund fees assessed by Southern Steer for late payments or failure to submit required reports. Southern Steer also has the right to charge interest on all overdue amounts at a rate of 18% per annum, or the maximum rate allowed by law, whichever is less. Franchisees are also liable for reimbursing Southern Steer's costs for collecting past-due fees, including attorney's fees.

Therefore, prospective Southern Steer franchisees should factor in potential bank fees associated with EFT payments when budgeting for their ongoing operational costs. Maintaining accurate financial records and ensuring timely payments are crucial to avoid additional charges and potential default under the Franchise Agreement.