What must a beneficiary agree to in order to receive a transferred Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ise), and Transferee and its Owners otherwise satisfy Franchisor's then current criteria and standards for franchisees, including the prohibition of engaging in any Competitive Activity;
- (h) the Transferee and its Owners pass Franchisor's application and background check process;
- (i) the Transferee and all of the Transferee's Owners execute the Franchisor's thencurrent form of Franchise Agreement, if required by the Franchisor;
- (j) the Transferee's Owner(s) execute a Personal Guaranty, if required by the Franchisor;
- (k) the Transferee's Owners and Designated Manager sign the Non-competition and Non-Disclosure Agreement, if required by the Franchisor;
- (l) the Transferee and all of the Transferee's Owners execute the agreements required by the Franchisor to document the Transfer of this Agreement to the Transferee, including the Personal Guaranty;
- (m) the Transferee has purchased or leased the Franchised Location for a term consistent with the remaining Initial Term of this Agreement or, if applicable, the Initial Term of the then-current standard Franchise Agreement;
- (n) all obligations, including all amounts owed by Franchisee and Franchisee's Owner(s) to Franchisor or its Affiliates have been assumed by the transferee or have been paid;
- (o) Franchisee has paid the Transfer Fee in the amount set out in Section 3.2(e);
- (p) if the Transferee was introduced to Franchisee via a franchise broker or referral source, Franchisee must also pay any applicable referral fees charged by the broker or other referral source;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a transferee—the beneficiary—must meet several conditions to receive a transferred franchise agreement. These include the transferee's owners and designated manager signing a Non-competition and Non-Disclosure Agreement, if required by Southern Steer. The transferee and all of its owners must also execute agreements required by Southern Steer to document the transfer, including a Personal Guaranty.
Furthermore, the transferee must either purchase or lease the franchised location for a term consistent with the remaining initial term of the franchise agreement. All obligations, including amounts owed by the franchisee and its owners to Southern Steer or its affiliates, must be either assumed by the transferee or paid in full. The franchisee must also pay the transfer fee. If the transferee was introduced via a franchise broker or referral source, the franchisee must pay any applicable referral fees.
Southern Steer retains the right to approve the material terms of the transfer, ensuring that the price and payment terms do not adversely affect the future operations of the Southern Steer business. Finally, the transferee or its operating principal and designated manager must successfully complete the initial training program to Southern Steer's satisfaction and pay a training fee, if applicable. These conditions ensure that the transferee is fully qualified and financially capable of operating the Southern Steer franchise according to the brand's standards.