When does the Royalty Fee payment obligation begin for a Southern Steer franchisee?

According to the 2025 Southern Steer Franchise Disclosure Document, the timing of royalty fee payments depends on whether the franchisee is opening a new location or purchasing an existing one. For new Southern Steer locations, the franchisee must begin paying a continuing weekly Royalty Fee starting the third month after the Required Opening Date. This Royalty Fee is based on the Gross Revenues generated by the Southern Steer business during the preceding week.

However, if a franchisee purchases an ongoing Southern Steer business (as a Transferee), the royalty fee payment obligation begins much sooner. In this case, the franchisee will pay the Royalty Fee beginning on the first week of the franchisee's Required Opening Date.

In both scenarios, the Royalty Fee is a percentage of gross revenue, payable weekly. The difference lies in the starting point: new franchisees get a two-month grace period after opening, while those buying existing businesses must start paying immediately upon their Required Opening Date. This distinction is important for budgeting and cash flow projections when considering either type of franchise opportunity with Southern Steer.