How is the Successor Franchise Fee determined for a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, the Successor Franchise Fee is calculated as 25% of the then-current Initial Franchise Fee.

For a franchisee considering renewing their agreement for a Successor Term, this means they will need to pay this fee, in lieu of the full Initial Franchise Fee, at least 90 days before the renewal. It's important to note that the Successor Franchise Agreement may contain terms and conditions that are materially different from the original agreement, potentially including different performance standards, fee structures, and increased fees.

In addition to the Successor Franchise Fee, the franchisee must meet several other conditions to be eligible for a Successor Term, such as providing evidence of owning or having the right to lease the franchised location for at least five additional years, signing the then-current form of the franchise agreement, executing a general release of claims against Southern Steer, completing any new training requirements, and agreeing to make necessary capital expenditures to remodel the franchised location to comply with the then-current image standards.