Is agreeing in writing to remodel the Southern Steer Business a requirement for renewal?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, agreeing in writing to remodel your Southern Steer Business is indeed a requirement for franchise renewal. To renew for an additional 10-year term, a franchisee must "agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures)." This requirement ensures that all Southern Steer locations maintain a consistent brand image and meet current standards.
In addition to agreeing to remodel, the franchisee must also provide evidence of their financial capability to cover the remodeling costs. This protects Southern Steer by ensuring the franchisee can complete the remodel. The franchisee must also meet several other conditions to be eligible for renewal, including providing written notice within a specific timeframe, complying with all material terms of the current Franchise Agreement, fulfilling all monetary obligations, securing the right to occupy the premises for at least five more years, paying a Successor Franchise Fee, completing required training, and releasing claims against Southern Steer.
Prospective franchisees should carefully consider the potential costs and requirements associated with remodeling when evaluating the Southern Steer franchise opportunity. It is important to discuss the expected scope and cost of required remodels with Southern Steer during the due diligence process to fully understand the financial implications of renewing the franchise agreement. Furthermore, the new Successor Franchise Agreement may contain materially different terms and conditions than the original, which could also impact the franchisee's decision to renew.