What attachment contains the terms required in the lease for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will not sign the Lease until (a) this Agreement has been signed by both the Franchisee and the Franchisor; and (b) the Lease contains the terms required under this Section and the terms set forth in the Form of Lease Addendum attached to this Agreement as Attachment F.
The Franchisee will use its best efforts to negotiate and secure from the lessor of the Franchised Location the terms and conditions set forth herein and in the Form of Lease Addendum attached hereto.
In addition, the terms of the Lease must also give the Franchisor the right to enter the premises of the Franchised Location to conduct inspections during regular business hours.
Further, the Franchisee must execute a Collateral Assignment of Lease attached to this Agreement as Attachment F-1, whereby the Franchisee agrees to assign the Franchisee's rights in the Lease to the Franchisor in the event of a termination or expiration of the term of this Agreement or a default under the Lease.
The Franchisee will provide executed copies of the Lease or purchase closing documents for the Franchised Location within 10 days after their execution.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Attachment F contains the Form of Lease Addendum, which outlines the terms required for the lease agreement. The franchisee must provide Southern Steer with a copy of the proposed lease at least 30 days before signing. Southern Steer may assist in negotiating the lease terms, but the franchisee is ultimately responsible for all lease terms, including their enforceability and legality.
The enforceability of the lease must be conditional upon Southern Steer approving the franchisee. The franchisee cannot sign the lease until the Franchise Agreement is signed by both parties and the lease contains the terms outlined in Attachment F. The franchisee must also secure terms and conditions from the lessor as outlined in the Form of Lease Addendum.
Furthermore, the lease must grant Southern Steer the right to inspect the premises during regular business hours. The franchisee is also required to execute a Collateral Assignment of Lease, as detailed in Attachment F-1, which assigns the franchisee's rights in the lease to Southern Steer in the event of termination, expiration, or default. Executed copies of the lease or purchase closing documents must be provided to Southern Steer within 10 days of execution, and the lease must comply with these requirements within 90 days of the Effective Date.