What is considered a 'Franchisee's Offer' in the context of Southern Steer's option to purchase?

According to Southern Steer's 2025 Franchise Disclosure Document, a 'Franchisee's Offer' is a written offer from the franchisee to Southern Steer that includes the purchase price, payment terms, and all other material terms and conditions of a proposed transaction with a third party for the Southern Steer business or its major assets. This offer initiates Southern Steer's option to either purchase the business itself or waive its right to do so.

This means that if a Southern Steer franchisee intends to sell their business to someone else, they must first present Southern Steer with a formal offer containing all the details of the proposed sale. Southern Steer then has 30 days to decide whether to match the offer and buy the business themselves or allow the franchisee to proceed with the sale to the third party.

The 'Franchisee's Offer' is a critical step in the transfer process, as it gives Southern Steer the first right of refusal. This protects Southern Steer's interests by allowing them to maintain control over who joins their franchise system and ensuring that any transfer aligns with their strategic goals. Franchisees should ensure that their offer is comprehensive and accurately reflects the terms of the proposed sale to avoid any delays or complications.

If the franchisee negotiates changes with the purchaser that were not acceptable to Southern Steer, the franchisee is required to re-offer the sale to Southern Steer under the new terms. Failure to do so constitutes a material breach of the agreement. This ensures Southern Steer has the opportunity to reassess the offer based on the final terms agreed upon with the potential buyer.