What is the total Development Fee for the second Southern Steer Business under the MUDA?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You sign the MUDA, You must pay the Initial Franchise Fee for the first Southern Steer Business in accordance with the Initial Franchise Agreement and You must pay the development fee in the amount of $49,500 for the second Southern Steer Business and $42,000 for the third Southern Steer Business ("Development Fee").
Source: Item 4 — ITEM. 4 BANKRUPTCY (FDD pages 10–11)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a prospective franchisee signs a Multi-Unit Development Agreement (MUDA), they must pay a development fee for each additional Southern Steer business they commit to opening. Specifically, the development fee for the second Southern Steer Business is $49,500. This fee is part of the overall Development Fee paid when the MUDA is signed.
The Development Fee is fully earned by Southern Steer upon execution of the MUDA and is non-refundable under any circumstances, even if the franchisee fails to develop any additional Southern Steer Businesses under the MUDA. The franchisee will also sign a separate Franchise Agreement for each Southern Steer Business developed under the MUDA, using the then-current form offered by Southern Steer.
It is important to note that the initial investment for each subsequent franchise purchased under the MUDA does not include an Initial Franchise Fee or Development Fee. However, the cost of training for each additional Southern Steer Business opened may be reduced based on the franchisee's operating performance of their other Southern Steer Businesses. Prospective franchisees should carefully consider the financial commitment and development schedule required under the MUDA before signing the agreement, as the Development Fee is non-refundable.