Southern Steer logo

Southern Steer Franchise

Audited Financials
Food and BeverageEst. 2020Palm Harbor, FL
www.southernsteer.com

Risk Score

Pending analysis

Investment Range

$393,636 - $671,750

Franchise Fee

$42,075

Total US Locations

4

Business Summary

SOUTHERN STEER BUTCHER operates full-service butcher shops and groceries that specialize in marinated meats, specialty cuts, homemade prepared foods, specialty marinades, fine cheeses, and where permitted, wine and beer. The business also offers food preparation classes and takeout food assembly packages, utilizing its proprietary system and marks.

Corporate History

Southern Steer Franchising International, LLC was formed as a Florida limited liability company on June 30, 2020. It began offering Southern Steer Butcher franchises on October 27, 2020. The franchisor itself has never operated a business similar to the Southern Steer Butcher concept. However, its affiliate, Southern Steer Butcher, LLC, was formed in September 2012 and has been operating a Southern Steer Butcher business in Florida since 2013, predating the franchising entity.

Financial Overview

Investment Range

$393,636 - $671,750

Franchise Fee (Low)

$42,075

Franchise Fee (High)

$59,500

Royalty %

6%

Equipment Costs (Low)

$217,000

Equipment Costs (High)

$425,000

Working Capital

$32,500

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

Southern Steer Franchising International, LLC has experienced significant financial challenges, reporting substantial net losses and negative cash flow from operations for the fiscal year ended September 30, 2023. The company also has a members' deficiency (negative equity) as of that date. Southern Steer Franchising International, LLC does not offer direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other obligations.

Financing Details

Southern Steer Franchising International, LLC does not offer any direct or indirect financing to its franchisees. Additionally, Southern Steer Franchising International, LLC does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

4

Franchised Units

3

Corporate Units

1

Avg Square Footage

2,150

Franchising Since

2020

Agreement Terms

Initial Term

10 years

Renewal Term

10 years

Renewal Conditions

To renew their Southern Steer Butcher franchise, franchisees must provide written notice at least 180 days (but no more than 365 days) before their agreement expires. They must have complied with all material terms of their current Franchise Agreement and paid all financial obligations. Franchisees must agree in writing to remodel their Southern Steer Butcher business to meet current brand image and provide proof of financial ability to do so. They must also have the right to occupy the premises for at least five additional years, pay a successor franchise fee (25% of the then-current initial franchise fee), sign a general release of claims against Southern Steer Franchising International, LLC and its affiliates, and ensure the franchisee and their Designated Manager complete any required training. Additionally, all necessary licenses, insurance, registrations, and approvals from governing authorities must be in place.

Training & Support Program

Franchisor Assistance

Southern Steer Franchising International, LLC provides pre-opening assistance to its Southern Steer Butcher franchisees, including designating a protected area, offering site criteria, reviewing proposed sites and leases, and providing templates for site and signage plans. They also provide access to the Brand Manual, initial inventory lists, approved supplier lists, and initial marketing materials. Franchisees or their Operating Principal and Designated Manager receive an Initial Training Program lasting up to two weeks. During operations, Southern Steer Franchising International, LLC offers up to two weeks of on-site grand opening assistance. They may conduct annual Brand Conferences (which may incur a fee) and provide additional training or consulting for a fee. The franchisor also offers general marketing recommendations and materials at the franchisee's cost, conducts periodic site visits, provides pricing guides, updates on suppliers and new products, and makes a representative available by phone or email for discussions. Additionally, they provide franchisees with a page on their designated website and administer a Brand Fund.

Initial Training Hours

94

Training Location

Clearwater, Florida or other designated locations

Ongoing Support

Southern Steer Franchising International, LLC provides several ongoing support services to its Southern Steer Butcher franchisees. This includes up to two weeks of on-site grand opening assistance for their business. Southern Steer Franchising International, LLC may also conduct an annual Brand Conference, seminars, or meetings, for which a fee might be charged. Additional training and consulting assistance are available upon request, which may also incur a reasonable fee. Southern Steer Franchising International, LLC periodically offers general marketing recommendations and materials, though these are at the franchisee's cost, and reviews local marketing efforts. They may conduct periodic site visits to review the business and provide written reports. Franchisees also receive updated information on designated suppliers, required products, and new product and service offerings. A representative from Southern Steer Franchising International, LLC is reasonably available by phone or email during normal business hours for discussions on business, marketing, strategy, and advice. Furthermore, Southern Steer Franchising International, LLC provides each franchisee with a page on its designated website and administers the Brand Fund, if established.

Franchise Requirements

Ideal Candidate Profile

Southern Steer Franchising International, LLC seeks individuals who are prepared to personally participate in the day-to-day management of their Southern Steer Butcher business. While a Designated Manager can be hired, the Operating Principal is expected to have an equity interest and remain involved. For multi-unit development, candidates must possess significant financial resources and strong business acumen. The franchisor values management skill, experience, and overall business judgment, as evidenced by the backgrounds of its own management team, which includes extensive experience in the restaurant and franchising industries.

Industry Experience Required

No

Management Experience Required

Yes

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

retail

Owner Participation

hands-on

Territory Type

protected

Staff Count

7

Territory Size Requirements

Southern Steer Franchising International, LLC assigns a Protected Area for each Southern Steer Butcher business. This area is customized based on the specific site's demographics, typically extending up to a five-mile radius around the business location. There is no minimum geographic territory size defined for a single unit.

Staffing Notes

Southern Steer Franchising International, LLC notes that staff labor costs include hourly employees, managers, and assistant managers. Based on existing locations, typical staffing ranges from 5 to 9 employees. For instance, one location employs eight hourly staff and one manager. Franchisees have the option to manage the day-to-day operations themselves to potentially operate with fewer employees. However, if the franchisee chooses not to manage daily operations, or if business volume dictates, additional hourly employees or a general manager may be required. Multi-unit operators might also need general managers to oversee multiple Southern Steer Butcher locations.