Is compliance with all material terms and conditions of the current Franchise Agreement a requirement for Southern Steer franchise renewal?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee must comply with all material terms and conditions of their current Franchise Agreement to be eligible for renewal. The initial franchise term for Southern Steer is 10 years, beginning on the effective date, which may be extended to coincide with the lease term. Franchisees have the option to renew for one additional 10-year term.
To renew their Southern Steer franchise, franchisees must provide written notice between 180 and 365 days before the expiration of the current term. In addition to compliance with the current agreement, franchisees must have paid all monetary obligations owed to Southern Steer during the term. They must also agree in writing to remodel their Southern Steer Business and provide evidence of their financial capability to cover these expenses. The franchisee must also have the right to continue occupying the premises for at least five additional years.
Furthermore, franchisees must pay the Successor Franchise Fee, execute a general release of claims against Southern Steer and its related entities, and ensure that both the franchisee and their Designated Manager complete the required training. Upon renewal, franchisees will sign a new Successor Franchise Agreement, which may contain materially different terms and conditions than the original agreement. Finally, franchisees must maintain all necessary licenses, insurance, registrations, and approvals required to operate the Southern Steer Business in their protected area.