Under what circumstances are Additional Training Fees payable for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Date Due | Remarks |
|---|---|---|---|
| Royalty | Beginning on the third | Wednesday each | The Royalty is based on Gross |
| month from Your | week for the | Revenues from the previous week | |
| Required Opening Date, 6% of annual Gross Revenues from $1.00 to $1,000,000; 5% from $1,000,001 to $2,000,000; and 4% from $2,000,001 and greater.(2). | preceding week. | for each individual Southern Steer Business You operate. Payments are made via electronic fund transfer ("EFT") or automatic withdrawal. We reserve the right to designate another day of the week for payment. The Gross Revenue calculation is re set each calendar year and is based on each individual Southern Steer Business You operate. | |
| Brand Fund | 1% of weekly Gross | At the time Royalty | Deposited in the brand and |
| Contribution(3) | Revenues. | is paid. | marketing fund ("Brand Fund") controlled by Us. We may increase, reduce, or suspend the Brand Fund Contribution upon prior notice. |
| Type of Fee(1) | Amount | Date Due | Remarks |
| Local Advertising Cooperative Contribution(4) | Up to 1% of monthly Gross Revenues. | Monthly. | Payable if a Local Advertising Cooperative is established and We require You to participate (See Item 11). We do not currently have any Local Advertising Cooperatives established. |
| Supplies and Inventory(5) | Actual Cost. | Upon receipt of supplies or inventory. | You must reimburse Us for all purchases of goods and services We make on Your behalf. |
| Technology Fee | The then current fee. Currently, $507 per month. | Monthly. | The Technology Fee includes the monthly fee paid to our designated suppliers for IFX, email addresses and Google Business page. The Technology Fee may change upon prior notice to You if the vendor changes the fees or We change vendors. |
| POS System Fee | The then current fee. Currently, $800 per month. | Monthly. | The POS System Fee includes the fee paid to our designated supplier for integration and cloud-based support. This fee may change upon prior notice to You if the vendor changes the fees, We change functionality, or We change vendors. |
| Direct Ad TV | The then current fee. Currently, $180 per year. | Annually. | The annual fee covers two direct TV ads. You will pay $15 annually for each additional Direct Ad TV that you elect to use in your Southern Steer Business. |
| Recipe/Safety Fee | The then current fee. Currently, $105 per quarter. | Quarterly. | The Recipe/Safety Fee may change upon prior notice to You if the vendor changes the fees, We change functionality, or We change vendors. |
| Signage Fee | The then current fee. Currently, $350 per year. | Annually. | This Signage Fee is for digital display signage. The Signage Fee may change upon prior notice to You if the vendor changes the fees, We change functionality, or We change vendors. |
| Additional Training Fees(6) | Our then current fee. Currently, $400 per day, per person plus travel and living expenses. | Within 10 days after invoice. | Payable if We conduct a |
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, additional training fees are payable under specific circumstances. While the initial franchise fee covers training for up to two people, Southern Steer reserves the right to charge for any additional training provided. The current fee for additional training is $400 per day, per person, plus travel and living expenses. These fees are due within 10 days after the invoice date.
Additional training fees become payable if Southern Steer conducts training at the franchisee's site, provides extra training at its headquarters, or if the franchisee requires additional opening assistance. Furthermore, fees are applicable if the franchisee requests consulting assistance at their Southern Steer Business or if Southern Steer determines that the franchisee requires additional training.
This policy means that franchisees should budget for potential additional training costs beyond the initial training included in the franchise fee. The need for additional training could arise from various factors, including the franchisee's or their staff's learning curve, specific operational challenges, or requests for on-site support. Franchisees should carefully assess their training needs and plan accordingly to avoid unexpected expenses.
Prospective Southern Steer franchisees should inquire about the typical situations that necessitate additional training and the estimated costs associated with it. Understanding these potential expenses will help in creating a more accurate financial projection for the franchise.