What is the definition of 'Franchise Agreement' in the context of the Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Lessor acknowledges that Lessee intends to operate a Southern Steer Business franchise from the leased Premises pursuant to a Franchise Agreement ("Franchise Agreement") with Southern Steer Franchising International, LLC ("Franchisor") under the name "Southern Steer Butcher" or other name designated by Franchisor (herein referred to as "Franchised Southern Steer Business").
30.25.
Franchise. "Franchise" will mean the right granted by the Franchisor to the Franchisee under this Agreement authorizing the Franchisee to operate a Southern Steer Business at the Franchised Location in conformity with the System using the name "Southern Steer Butcher" (as we designate) and the other Marks.
Franchisee agrees at all times during the Initial Term and any Interim Period to faithfully, honestly and diligently perform Franchisee's obligations under this Agreement, including in the promotion and development of Franchisee's Southern Steer Business in Franchisee's Protected Territory.
Franchisee will maintain the image of the Southern Steer Business at all times in accordance with Franchisor's standards and specifications, including: (i) ensuring that the Franchised Location is maintained in a clean and orderly manner; (ii) ensuring that all FF&E remain in good, clean condition and inventory is properly displayed; and (iii) only offering such types of products, food items and services, including Food, Beverages and Products, that Franchisor authorizes from time to time for use by Franchise's Southern Steer Business as set forth in the Brand Manual and this Agreement.
A termination of this Agreement by Franchisee or any action by Franchisee to convert its Southern Steer Business to another business in violation of this Agreement will be deemed to be a termination without cause and a breach hereof, by Franchisee and (a) such actions will not relieve Franchisee of, or release Franchisee from, any of its obligations under this Agreement; (b) Franchisee's obligations under this Agreement will remain in full force and effect; and (c) Franchisee will be obligated to fully perform all terms and conditions of this Agreement until such time as this Agreement expires or is terminated in accordance with the provisions of this Agreement and applicable law.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the 'Franchise Agreement' refers to the agreement between Southern Steer Franchising International, LLC (the Franchisor) and the franchisee. This agreement grants the franchisee the right to operate a Southern Steer Business at a specific Franchised Location, adhering to the standards of the Southern Steer system and utilizing the brand name "Southern Steer Butcher" and other associated trademarks.
The Franchise Agreement outlines the terms and conditions under which the franchisee is authorized to operate the Southern Steer Business. This includes the franchisee's obligations to faithfully perform their duties, promote the business, and cooperate with Southern Steer and other franchisees. It also specifies that the franchisee must maintain the image of the Southern Steer Business in accordance with the franchisor's standards, ensuring cleanliness, proper display of inventory, and adherence to authorized products and services.
Furthermore, the Franchise Agreement addresses the relationship between the franchisee and any lessor of the premises. It acknowledges the franchisee's intention to operate a Southern Steer franchise and grants the franchisee the right to remodel and decorate the premises according to the agreement. The agreement also covers the franchisee's right to assign or sublet the lease under certain conditions, such as to the franchisor or another franchisee.
The Franchise Agreement also contains stipulations regarding termination, the franchisor's right to acquire the Southern Steer Business, and the franchisee's obligations upon termination. It emphasizes that franchisees cannot escape their financial commitments under the agreement and that any termination by the franchisee without cause will not relieve them of their obligations. The agreement also defines various terms relevant to the franchise operation, such as 'Franchised Location,' 'Foods, Beverages and Products,' and 'Governmental Authority.'