Who bears the cost of modifications to standard plans for a Southern Steer location?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ive Management, agents and employees, in their corporate and individual capacities, from any and all Claims by the Franchisee arising from, in connection with, or as a result of the Franchisee's purchase or lease of the site selected by the Franchisee for the Franchised Location.
- 5.5. Standard Plans and Specifications. The Franchisor will provide the Franchisee with a set of the template plans and specifications for a standard Southern Steer Business. The Franchisee acknowledges that unique aspects of each real estate site may require significant modifications to the standard plans. Consequently, the Franchisee will, at its cost, retain a licensed architect and will be responsible for the preparation of working drawings and construction and architectural plans and specifications for the Franchisee's Southern Steer Business. The Franchisee will be responsible for the accuracy of all drawings, plans and specifications for its Southern Steer Business, subject to the Franchisor's review and approval.
- 5.6. Compliance with Specifications and Standards. The Franchised Location and the Franchisee's Southern Steer Business will conform to all standards, specifications and other requirements ("Design Standards") established by the Franchisor for the design, decoration, layout, FF&E and other items of the Southern Steer Business. Any changes or modifications to the Design Standards must be submitted to the Franchisor for its prior approval.
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 all costs associated with modifications to the standard plans and specifications for their location. Southern Steer provides franchisees with template plans, but franchisees must hire a licensed architect to prepare working drawings and construction plans that account for the unique aspects of their specific site. These architectural plans are subject to Southern Steer's review and approval.
Specifically, the franchisee bears the financial burden for any changes to the plans necessitated by the structure, construction, or layout of their chosen location. This includes expenses related to architectural plans, building permits, site preparation, demolition, landscaping, HVAC systems, interior decor, and other construction-related items. The franchisee is also responsible for ensuring the accuracy of all drawings, plans, and specifications.
This means that prospective Southern Steer franchisees need to carefully consider potential modification costs when evaluating a site. These costs can vary significantly depending on the site's existing conditions and local regulations. Franchisees should obtain detailed cost estimates from qualified contractors and architects to accurately assess the financial implications of site modifications before committing to a location. Furthermore, franchisees are responsible for inspections during construction to ensure work is completed according to Southern Steer's specifications.