What is Attachment G-1 related to in the Southern Steer FDD?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Lessee will have the right to assign or sublet all of its right, title and interest in the Lease, at any time during the term of the Lease, including any extensions or renewals thereof, without charge and without first obtaining Lessor's consent in accordance with the Collateral Assignment of Lease attached hereto as Attachment G-1: (a) to Franchisor or Franchisor's parent, subsidiary, or affiliate, (b) to a duly authorized franchisee of Franchisor, (c) in connection with a merger, acquisition, reorganization or consolidation, or (d) in connection with the sale of Lessee's corporate stock or assets.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Attachment G-1 is related to the Collateral Assignment of Lease. Specifically, it outlines the conditions under which a franchisee can assign or sublet their lease without needing the lessor's consent.
The document specifies several scenarios where the franchisee can assign or sublet the lease. These include assigning it to Southern Steer Franchising International, LLC (the franchisor) or its parent company, subsidiary, or affiliate. It also allows assignment to another authorized Southern Steer franchisee. Furthermore, assignment or subletting is permitted in connection with a merger, acquisition, reorganization, consolidation, or the sale of the franchisee's corporate stock or assets.
This attachment is important for prospective franchisees as it provides flexibility in managing their lease obligations under certain circumstances, such as selling the franchise or restructuring the business. It ensures that the franchisee has options for transferring the lease to another party without facing undue restrictions from the lessor, as long as the conditions outlined in Attachment G-1 are met.