What is the standard initial franchise fee for a single Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
hen certain performance obligations are met.
- The contract with the Customer: The parties involved are Southern Steer Franchising International, LLC and the prospective franchisees, for their financial consideration, in cash at an initial cost of $49,500, $35,000 for a second and $25,000 for each additional location. The franchisee will receive trai
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial franchise fee for the first Southern Steer business is $49,500. This fee grants the franchisee training, national advertising, and the right to use Southern Steer's trademarks. The FDD also states that payment of the initial franchise fee will be deferred until Southern Steer has satisfied its pre-opening obligations and the franchisee has commenced business operations.
For multi-unit developers, the initial franchise fee structure varies. The initial franchise fee for the second Southern Steer business is also $49,500. However, for the third Southern Steer business, the development fee is $42,000. These fees are part of a broader development fee that compensates Southern Steer for granting the multi-unit developer the right to develop multiple Southern Steer businesses in a designated development territory.
Prospective franchisees should note that a deposit of $29,750 is required upon execution of the Deposit Agreement, which will be applied to the initial franchise fee. This deposit becomes non-refundable upon the execution of the Franchise Agreement and is deemed earned by Southern Steer for processing the Franchise Agreement and for services performed following the effective date of the agreement. The franchisee is required to sign the Franchise Agreement at the time of signing the Deposit Agreement and pay the balance of the initial franchisee fee on the earlier of receipt of funds from a 401K, IRA, or other qualified retirement account roll-over or third-party lender, or 30 days from the Effective Date of the Deposit Agreement.