For subsequent Southern Steer businesses, what initial franchise fee applies to the Multi-Unit Developer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Any Subsequent Southern Steer Businesses. For the any subsequent Southern Steer Businesses Multi-Unit Developer is required to open and operate in the Development Territory pursuant to the Development, the portion of the Development Fee paid in accordance with **Section [4.1
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 the 2025 Southern Steer Franchise Disclosure Document, the initial franchise fee for any subsequent Southern Steer businesses that a Multi-Unit Developer is required to open and operate in the Development Territory will be covered by a portion of the Development Fee. This fee is paid according to Section 4.1(c) of the agreement. The Development Fee portion will be applied as the then-current initial franchise fee set out in the then-current Franchise Agreement at the time the Franchise Agreement is executed by the Multi-Unit Developer.
This means that instead of paying a separate initial franchise fee for each additional location, the Multi-Unit Developer's Development Fee covers this cost. The amount applied from the Development Fee will be equal to the initial franchise fee in place at the time each subsequent franchise agreement is signed. This structure is designed to incentivize and support the expansion of Southern Steer through multi-unit development.
It is important for prospective Multi-Unit Developers to understand that the Development Fee is nonrefundable, even if they fail to develop all the agreed-upon Southern Steer Businesses. Additionally, the initial franchise fee covered by the Development Fee will be the fee in effect at the time each individual franchise agreement is signed, which may vary over time. Multi-Unit Developers should carefully review Section 4.1(c) of the Multi-Unit Development Agreement and the current Franchise Agreement to fully understand the financial implications of this arrangement.