What is the standard initial franchise fee for a single Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You sign a Franchise Agreement for a single Southern Steer Business, You will pay Us an initial franchise fee ("Initial Franchise Fee") of $59,500. You must pay the Initial Franchise Fee in full when You sign the Franchise Agreement. The Initial Franchise Fee is fully earned by Us upon execution by You of the Franchise Agreement and is not refundable under any circumstances. The Initial Franchise Fee is uniform on all Southern Steer Business franchisees except as described below.
In the event You are using funds from your 401(k), IRA, other qualified retirement accounts or a third-party lender to purchase Your Southern Steer Business, We may allow You to enter into a Deposit Agreement (Exhibit I) and pay a deposit of $29,750 toward your Initial Franchise Fee when you sign the Deposit Agreement. You will pay the balance of the Initial Franchise Fee on the earlier of (a) receipt of funds from your 401(k), IRA, other qualified retirement accounts or third-party lender; or (b) 30 days from the effective date of the Deposit Agreement ("Payment Date"). We may agree to extend the Payment Date by an additional 30 day period at Your request if You have not received the funds from your 401(k), IRA, other qualified retirement accounts or third-party lender within the original 30-day period set out in the Deposit Agreement. You will sign the Franchise Agreement at the time You pay the Deposit. The Deposit is non-refundable once paid. and the balance of the Initial Franchise Fee will be due on the Payment Date.
Veterans of the United States armed services will receive a 15% discount on the Initial Franchise Fee.
In our last fiscal year, we collected a range of initial franchise fees of $49,500 to $151,000.
Source: Item 4 — ITEM. 4 BANKRUPTCY (FDD pages 10–11)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial franchise fee for a single Southern Steer business is $59,500. This fee is due in full when the Franchise Agreement is signed. Once paid, the initial franchise fee is considered fully earned by Southern Steer and is non-refundable under any circumstances. This fee is generally uniform for all Southern Steer franchisees.
However, the FDD notes an exception for veterans of the United States armed services, who receive a 15% discount on the initial franchise fee. In addition, if a franchisee is using funds from a 401(k), IRA, other qualified retirement accounts, or a third-party lender, Southern Steer may allow them to enter into a Deposit Agreement. This agreement allows for an initial deposit of $29,750, with the balance due upon receipt of funds or 30 days from the Deposit Agreement's effective date, with a possible 30-day extension.
It is important to note that in the last fiscal year, Southern Steer collected initial franchise fees ranging from $49,500 to $151,000. This range suggests that while the standard fee is $59,500, other factors, such as negotiated agreements or multi-unit deals, can influence the actual fee paid. Prospective franchisees should clarify the specific initial franchise fee applicable to their situation and any potential variations.
Furthermore, the FDD states that payment of the initial franchise fee may be deferred until Southern Steer has satisfied its pre-opening obligations, and the franchisee has commenced business operations. This amendment provides some financial relief to the franchisee during the initial setup phase, aligning the fee payment with the start of business operations.