What criteria must a supplier meet to become an 'Approved Supplier' for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee desires to use different foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products or desires to purchase foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers Franchisee must first obtain Franchisor's approval in writing.
Any suppliers proposed by Franchisee must conform to the Franchisor's standards and specifications and Franchisor must first determine that the supplier's business reputation, quality standards, delivery performance, credit rating, and other criteria meet Franchisee standards and specifications.
The Franchisor may deny or revoke the Franchisor's approval of any supplier at any time based upon the lack of any of the above items.
If the Franchisee desires to purchase any required foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers which are not Approved Suppliers, then the Franchisee must, at its expense, submit samples, specifications, and product information requested by the Franchisor, for review and testing to determine whether these foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products comply with the Franchisor's standards and specifications.
The Franchisor will also have the right to inspect the facilities of the proposed supplier, and the Franchisee will reimburse the Franchisor for the costs and expenses incurred to conduct the inspection.
The Franchisor will complete all testing and will notify the Franchisee of its determination within 30 days after the Franchisor completes its testing, inspection and evaluation process.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a franchisee wants to use a supplier that is not already approved, the franchisee must first get written approval from Southern Steer. To gain approval, the potential supplier must meet Southern Steer's standards and specifications. Southern Steer will assess the supplier's business reputation, quality standards, delivery performance, and credit rating to determine if they meet the required criteria. Southern Steer can also revoke approval at any time if a supplier fails to maintain these standards.
Furthermore, the franchisee bears the cost of submitting samples, specifications, and product information for review and testing by Southern Steer to ensure compliance with their standards. Southern Steer also has the right to inspect the supplier's facilities, with the franchisee responsible for reimbursing Southern Steer for all inspection-related expenses.
Southern Steer will complete its evaluation within 30 days after testing, inspection, and evaluation. This process ensures that all suppliers meet Southern Steer's standards, maintaining consistency and quality across all franchise locations. This requirement helps protect the Southern Steer brand and ensures customers receive a consistent product, but it also places the burden of cost and approval on the franchisee when seeking new suppliers.