Southern Steer Butcher

The franchise fee of $59,500 is approximately 49-98% higher than typical fees in this category. Can you explain the specific value and services included that justify this premium pricing?

The monthly technology fee of $311 exceeds the typical range. What specific technology systems, software, or services does this fee cover, and are there opportunities to reduce or eliminate this charge?

The non-compete clause restricts competition within 50 miles for 2 years, which is more than double the typical range. How was this geographic radius determined, and are there circumstances where this might be negotiated?

Your transfer rate of 11.1% is notably higher than the typical range of 0-6.05%. Of the 1 transfer recorded in 2024, what was the reason, and what trends are you observing with franchisees seeking to transfer their units?

With 21 termination causes listed in the contract versus a typical range of 15-20, can you provide a detailed breakdown of which causes are most commonly cited and which are considered non-curable defaults?

The contract requires mandatory remodeling within 6 months of renewal and imposes a renewal fee of 25% of the then-current initial franchise fee. What are typical remodeling costs, and how much should a franchisee budget for renewal?

Minimum gross revenue requirements begin after the first 12 months. What are the specific revenue targets, and what happens if a unit falls below these minimums?

Late fees of 1.5% per month and 18% annual interest apply to overdue payments. Under what circumstances have these been enforced, and are there any opportunities for payment plans or fee waivers?

The franchisor controls retail pricing to consumers and mandates operating hours. Can you provide examples of typical pricing structures and operating hour requirements, and how much flexibility do franchisees have?

Franchisees must purchase from franchisor-designated or approved suppliers for 8 categories of items. What percentage of total costs typically comes from mandated suppliers, and are there approved alternatives to reduce costs?

All disputes require mandatory non-binding mediation followed by binding arbitration in Clearwater. Have there been any disputes that proceeded through this process, and what were the outcomes?

Personal guarantees are required from all owners, and spouses must sign liability documents. How is spousal liability enforced, and have there been cases where spouses were held personally liable for franchisee obligations?

The $1,000,000 general liability insurance requirement is mandatory. Is this a standard requirement in the category, and what is the typical annual cost for this coverage?

Your reported median gross sales of $1,615,822 significantly exceed typical range for this category. Can you explain the sales range across your 9 units, and what factors drive the highest-performing locations?

You've achieved 31% three-year CAGR with zero closures or terminations. What operational support or training do you provide that contributes to this retention and growth rate?

With no litigation cases in the system's history, have you encountered any disputes, complaints, or regulatory issues that didn't result in formal legal action?

Item 19 financial performance data is available. Beyond gross sales, what information is provided regarding operating expenses, profitability, and net income for reporting units?

The franchise agreement mentions 8 conditions for renewal including payment of a renewal fee. What are all 8 conditions, and what percentage of franchisees successfully renew their agreements?

Given the exclusive territory protection, how do you handle competitive threats from non-franchised butcher shops or larger meat retailers within the protected territory?

What is the typical timeline from initial franchise agreement signing to opening a Southern Steer Butcher location, and what pre-opening support is provided?