Who retains the amount of unredeemed gift cards in the Southern Steer gift card program?

According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer reserves the right to retain the amount of any unredeemed gift cards. As a franchisee, you are required to participate in the gift card program if permitted by applicable law. To participate, you may need to purchase additional equipment and pay applicable fees for using that equipment.

This means that while franchisees are responsible for selling and honoring gift cards, Southern Steer maintains control over the funds from unredeemed cards. This is a common practice in franchising, as it allows the franchisor to manage the overall liability and potential revenue associated with gift cards across the entire system.

For a prospective franchisee, this implies that you will not directly benefit from gift cards that are sold but never redeemed at your location. The revenue from these unredeemed cards goes to Southern Steer. It is important to factor this into your financial projections and understand that the gift card program is primarily a tool for brand awareness and customer loyalty, rather than a direct profit center for your individual franchise. You should inquire about the specific fees and equipment costs associated with the gift card program to fully understand the financial implications.

It is also important to note that Southern Steer has the right to determine how the amount of the gift cards or loyalty cards will be divided or otherwise accounted for. This gives Southern Steer flexibility in managing the program and potentially using the funds for marketing or other system-wide initiatives. As a franchisee, you should stay informed about any changes to the gift card program and how it may impact your business.