What is the definition of 'Lease' in the context of the Southern Steer franchise agreement?

According to the 2025 Southern Steer Franchise Disclosure Document, the term "Lease" refers to the written lease agreement and any related documents that a franchisee signs for their franchised location. This definition is important because the lease is considered a Major Asset of the franchisee.

Southern Steer requires franchisees to provide a copy of their proposed lease to the franchisor at least 30 days before signing. While Southern Steer may offer assistance in negotiating the lease terms, the franchisee ultimately bears the responsibility for all aspects of the lease, including its enforceability, economics, and legality. The enforceability of the lease must be contingent on the franchisor's approval of the franchisee and the franchise agreement itself.

Furthermore, Southern Steer franchisees are obligated to secure lease terms that grant the franchisor the right to inspect the premises during regular business hours. They must also execute a Collateral Assignment of Lease, which allows Southern Steer to assume the franchisee's rights to the lease in the event of termination, expiration, or default. The franchisee must provide executed copies of the lease or purchase closing documents within 10 days of execution and comply with these lease requirements within 90 days of the agreement's effective date.