When are the Royalty Fee and Brand Fund Contribution payable by a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will pay the Franchisor or the Franchisor's Designated Supplier the then current Recipe/Safety Fee. (p) Signage Fee. The Franchisee will pay the Franchisor or the Franchisor's Designated Supplier the then current Signage Fee.
3.3. PAYMENT TERMS.
- (a) Date Payable. The Royalty Fee and Brand Fund Contribution will be payable by the Franchisee on Wednesday of each Week (or such other day of the Week as may be designated in writing by the Franchisor) based upon the Gross Revenues generated in the preceding Week. The Royalty Fee and Brand Fund Contribution will be payable by the Franchisee during the Initial Term of this Agreement and any Interim Period by EFT as provided for in Section 3.3(b) of this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the Royalty Fee and Brand Fund Contribution are payable weekly. Specifically, the franchisee must pay these fees each Wednesday, or another day designated in writing by Southern Steer, based on the Gross Revenues generated in the preceding week.
The Royalty Fee begins accruing in the third month after the franchisee's Required Opening Date. The Brand Fund Contribution, on the other hand, starts from the first week of the franchisee's Required Opening Date. The Brand Fund Contribution is set at 1% of the Weekly Gross Revenues.
Both the Royalty Fee and Brand Fund Contribution are payable during the initial term of the Franchise Agreement and any interim period. These payments are to be made via Electronic Funds Transfer (EFT). Southern Steer retains the right to change the collection basis for these fees with 30 days' prior written notice to the franchisee, and can rescind or modify this election with similar notice.