What agreement outlines the provisions related to the length of the Southern Steer franchise term?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD 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; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
| Provision | Agreement | Summary Franchise Agreement. You must also have all licenses, insurance, registrations and approvals required by Us and applicable governing authorities to operate the Southern Steer Business in the Protected Area. |
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, the length of the franchise term is detailed in Section 2.1 of the Franchise Agreement. The standard initial term for a Southern Steer franchise is 10 years, beginning on the Effective Date. This term may be extended under certain circumstances to coincide with the lease term for the franchisee's Southern Steer Business.
Southern Steer also offers an option for renewal or extension of the franchise term. Franchisees have the opportunity to renew for one additional 10-year term, as outlined in Section 2.2 of the Franchise Agreement.
To renew the franchise agreement with Southern Steer, a franchisee must meet several requirements. These include providing written notice of intent to renew at least 180 but not more than 365 days before the expiration of the current term, complying with all material terms and conditions of the existing Franchise Agreement, and fulfilling all monetary obligations owed to Southern Steer. Additionally, franchisees must agree in writing to remodel their Southern Steer Business and provide evidence of their financial capability to cover these expenses. They must also have the right to continue occupying the premises for at least five additional years, pay the Successor Franchise Fee, execute a general release of claims against Southern Steer, and ensure that both the franchisee and their Designated Manager complete the required training. Upon renewal, franchisees will sign a new Successor Franchise Agreement, which may contain materially different terms and conditions than the original agreement. Finally, the franchisee must possess all necessary licenses, insurance, registrations, and approvals required to operate the Southern Steer Business in their Protected Area.