Am I allowed to sub-franchise a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
1.7. Conditions. The Franchisee will not have the right to franchise, sub-franchise, license or sublicense its rights under this Agreement. The Franchisee will not have the right to Transfer this Agreement or its rights under this Agreement, except as specifically provided for in this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees do not have the right to sub-franchise. Specifically, the FDD states that the franchisee cannot franchise, sub-franchise, license, or sublicense their rights under the Franchise Agreement.
This restriction means that a Southern Steer franchisee must directly own and operate their location. They cannot sell the rights to operate the franchise to another party. This is a fairly standard restriction in franchising, as franchisors typically want to maintain control over who is operating their branded locations to ensure quality and consistency.
While franchisees cannot sub-franchise, they may be able to assign or transfer their rights under certain conditions, such as to Southern Steer itself, its parent company, or another franchisee. Any transfer would be subject to the terms outlined in the Franchise Agreement.