Under what circumstances is a Southern Steer franchisee required to pay an Additional Training Fee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
pal and the Designated Manager must satisfactorily complete the Initial Training Program no later than 30 days prior to Franchisee's scheduled Required Opening Date.
- (b) Location. The Initial Training Program will take place at Franchisor's headquarters or such other location designated by Franchisor.
- (c) Number of Attendees at the Initial Training Program. In addition to Franchisee or the Operating Principal and the Designated Manager, Franchisee may, upon Franchisor's approval and space availability, elect to have additional people attend the Initial Training Program. If Franchisee elects to have additional people attend the Initial Training Program, Franchisor may charge Franchisee the then current Additional Training Fee as set out in Section 3.2(c). Franchisee will also pay all travel, living expenses and wages, if any, that Franchisee's additional attendees incur to attend the Initial Training Program.
- 6.2. Completing the Initial Training Program. The Franchisee or the Operating Principal and the Designated Manager must successfully complete the Initial Training Program and be certified in writing by the Franchisor prior to the actual opening of the Franchisee's Southern Steer Business.
- 6.3. Changes in Personnel After Required Opening Date. All new Operating Principals and Designated Managers appointed or hired after the Required Opening Date of the Southern Steer Business must attend the Initial Training Program within 45 days (or such time as is designated by Franchisor) after the date of appointment or hiring. Franchisee will pay Franchisor the then current training fee for any replacement Operating Principals and Designated Managers that attend the Initial Training Program.
- 6.4. Additional Training.
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 may be required to pay an Additional Training Fee in several circumstances. If the franchisee elects to have additional people attend the Initial Training Program beyond the Franchisee (or the Operating Principal) and the Designated Manager, Southern Steer may charge the franchisee the then-current Additional Training Fee. The franchisee is also responsible for covering all travel, living expenses, and wages incurred by these additional attendees.
Furthermore, if new Operating Principals and Designated Managers are appointed or hired after the Required Opening Date, they must attend the Initial Training Program within 45 days (or as designated by Southern Steer). In this case, the franchisee will pay Southern Steer the then-current training fee for these replacement personnel.
Southern Steer may also require the franchisee, their management staff, and other employees to attend additional training at the franchisee's expense if the Southern Steer Business fails to meet certain performance standards or if Southern Steer determines, in its sole discretion, that additional training is necessary. Finally, if the Franchisee or its Operating Principal and the Designated Manager fail to satisfactorily complete the Initial Training Program, Southern Steer may require them to re-take the Initial Training Program or a portion thereof and pay the then current training fee, if any. Franchisees should be aware of these potential training costs and factor them into their financial planning.