Who bears the cost of additional expenditures required by modifications to the Southern Steer System standards?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee expressly agrees to abide by any modifications, changes, additions, deletions and alterations Franchisor makes to the System, Brand Manual and Franchisor's, standards, specifications, formats, processes, requirements, instructions and procedures.
Franchisee agrees to execute any and all documents necessary to effectuate the changes.
Franchisee agrees to monitor its email and any System intranet frequently in order to stay abreast of new developments to the Brand Manual and System standards.
Modifications, changes, deletions and alterations may require Franchisee to make additional expenditures born by Franchisee.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchisee is responsible for covering additional expenditures resulting from modifications, changes, deletions, and alterations made to the Southern Steer system, Brand Manual, and the franchisor's standards, specifications, formats, processes, requirements, instructions, and procedures. This means that if Southern Steer updates its operational guidelines or requirements, franchisees must bear the financial burden of implementing those changes in their businesses.
This obligation extends to various aspects of the business, including updates to computer hardware and software, where the franchisee is solely responsible for the costs of modifications, enhancements, updates, and upgrades. Similarly, if Southern Steer decides to modify or discontinue the use of any Marks or to develop additional or substitute marks or trade names, the franchisee will take action directed by the franchisor at the franchisee's sole expense to comply with such modification, discontinuation, addition, or substitution.
Franchisees are expected to stay informed about these changes by monitoring their email and any System intranet frequently. The Brand Manual, which contains the System's standards, is subject to change, and franchisees are responsible for implementing all required changes at their own cost within the timeframe specified by Southern Steer. This includes modifications to the Food, Beverages and Products and other food, food items, equipment, FF&E and services which the Southern Steer Business is authorized to offer or use.
This requirement is fairly standard in franchising, as franchisors need the flexibility to adapt their systems to changing market conditions and consumer preferences. However, it's crucial for prospective Southern Steer franchisees to understand that these ongoing costs can impact their profitability and require careful budgeting.