What was the total amount of royalty fees that Southern Steer collected in 2024?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
for clients investing in a t least 3 locations.
Royalty Payments
The Company also earns royalties based on gross revenue of its franchisees, ranging from three to five percent. The royalty rate schedule is regressive, computed as 5% for annual sales under $1MM, then dropping to 4% for additional sales up to $2M
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 financial statements include audits for the years ending September 30, 2024. The FDD states that Southern Steer earns royalties based on franchisee gross revenue, with rates ranging from 3% to 5%. The royalty rate is 5% for annual sales under $1 million, 4% for additional sales up to $2 million, and 3% for all yearly revenue beyond the latter threshold.
However, the provided excerpts from the FDD do not specify the total amount of royalty fees that Southern Steer collected during the 2024 fiscal year. The excerpts focus on the royalty rate structure and the timing of revenue recognition, but not the actual revenue received.
A prospective franchisee should ask Southern Steer for the total royalty fees collected during 2024 to better understand the franchisor's revenue streams and financial performance. This information would provide valuable insight into the overall health and stability of the Southern Steer franchise system.