What is the deadline for closing the sale of the Southern Steer Business to the franchisor after the Notice Date?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless the Franchisor terminates its Notice of Intent to Purchase as provided in Section 19.2 the Franchisee and the Franchisor will act in good faith to agree on the terms and conditions of the definitive agreement or agreements for the purchase of the Southern Steer Business or Major Assets (other than those objective terms and conditions contained in the Franchisee's Offer) and the closing date for the sale of the Southern Steer Business or Major Assets to the Franchisor will take place within 120 days after the Notice Date.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if the franchisor provides the franchisee with a Notice of Intent to Purchase, the closing date for the sale of the Southern Steer business to the franchisor will occur within 120 days after the Notice Date. The Notice Date refers to the date the franchisee receives the Notice of Intent to Purchase from Southern Steer.
Prior to this closing date, Southern Steer has a 90-day period after the Notice Date to conduct a due diligence review. During this time, Southern Steer has the right to terminate the Notice of Intent to Purchase for any reason, without obligation to purchase the business. The franchisee is expected to cooperate by providing all requested financial records and information to facilitate the due diligence review.
If Southern Steer does not terminate the Notice of Intent to Purchase during the due diligence period, both parties are expected to negotiate in good faith to finalize the terms of the purchase agreement. However, the closing must still occur within the 120-day window after the Notice Date. If the franchisee and Southern Steer fail to agree on terms by the 120th day, the franchisee is then free to sell to another purchaser.