What working capital requirements does a Southern Steer Multi-Unit Developer have to maintain?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Working Capital. The Multi-Unit Developer will, at all times, maintain sufficient working capital to both operate the Southern Steer Businesses and to fulfill its development obligations under this Agreement.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a Multi-Unit Developer must maintain sufficient working capital to operate their Southern Steer businesses and fulfill their development obligations under the Multi-Unit Development Agreement.
This requirement ensures that Multi-Unit Developers have the financial resources necessary to successfully manage existing Southern Steer locations and meet the schedule for opening new locations. Failing to maintain adequate working capital could hinder the developer's ability to operate effectively and expand as agreed, potentially leading to a breach of the development agreement.
Prospective Multi-Unit Developers should carefully assess their financial capacity to meet these ongoing working capital demands. They should factor in not only the day-to-day operational costs of running a Southern Steer business, but also the significant expenses associated with developing and opening new locations according to the agreed-upon schedule. It is important to develop a comprehensive financial plan that accounts for these requirements to ensure long-term success as a Multi-Unit Developer with Southern Steer.