What is the Transfer Fee for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Transfer Fee(8) | $10,000 plus our then current training fee for Transferee to attend Our Initial Training Program. | When transfer occurs. | Payable if You transfer Your Southern Steer Business. You must obtain Our prior approval of any transfer. |
- (8) Transfer Fee.
To transfer Your Southern Steer Business, You must pay a Transfer Fee plus any training fees for Your transferee to attend the Initial Training Program.
No Transfer Fee is required if You assign Your Franchise Agreement to a business entity in which You own the majority of the entity's equity.
You will also be responsible for paying any broker fees or referral fees, if any, required to be paid to a third party.
Source: Item 6 — ITEM. 6 OTHER FEES (FDD pages 11–16)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee to transfer their Southern Steer business. The transfer fee is $10,000, plus the then-current training fee for the transferee to attend the Initial Training Program. This fee is payable when the transfer occurs, and the franchisee must obtain Southern Steer's prior approval for any transfer.
However, the FDD also notes an exception: No transfer fee is required if a franchisee assigns their Franchise Agreement to a business entity in which they own the majority of the entity's equity. The franchisee is also responsible for paying any broker fees or referral fees required to be paid to a third party.
This means that if a franchisee sells their Southern Steer franchise to a new owner, they should anticipate paying $10,000 plus training fees to Southern Steer. This could significantly impact the profitability of selling the franchise. Franchisees should factor in these costs when considering a sale. It is also important to note that Southern Steer must approve the transfer, adding another layer to the process.