Under what circumstances will a Southern Steer franchisee be charged a Testing Fee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee requests to purchase new products, supplies, and services or to purchase products, supplies and services from new suppliers or vendors, Franchisee will pay Franchisor the actual cost incurred by Franchisor to test and inspect new products, supplies, services, suppliers and vendors , including but not limited to, travel and living expenses.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee will be charged a Testing Fee if they request to purchase new products, supplies, and services. This fee also applies if the franchisee wants to purchase existing products, supplies, and services from new suppliers or vendors not previously approved by Southern Steer.
The Testing Fee covers the actual costs Southern Steer incurs to test and inspect these new or alternative offerings. These costs can include, but are not limited to, travel and living expenses for Southern Steer personnel involved in the testing and inspection process.
This policy ensures that Southern Steer maintains quality control and brand consistency across all franchise locations. It also protects the brand from potential issues arising from unapproved products or suppliers. For a prospective franchisee, this means that introducing any new or different products or suppliers requires approval and will likely incur a Testing Fee, which could impact their operating costs.