Why does Southern Steer designate specific suppliers?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
ations of the Southern Steer Business and which are sold under any of the Marks, or direct any other person or Entity to do so; or (d) use, have access to, or have any rights to any proprietary formulas, ingredients, or recipes for any Foods, Beverages or Products created by or at the direction of the Franchisor and sold under any of the Marks.
- 7.5. Designated Suppliers. The Franchisee will purchase the certain Foods, Beverages and Products, FF&E, signage, marketing materials, third party delivery services, and equipment as specified in the Brand Manual or otherwise in writing by the Franchisor solely and exclusively from Designated Suppliers. The Franchisor or an Affiliate may be a Designated Supplier.
- 7.6. Approved Suppliers. Franchisee will purchase all products, services, supplies, equipment, materials and Foods, Beverages or Products required for the operation of Franchisee's Southern Steer Business from manufacturers, suppliers or distributors designated or previously approved by Franchisor. Franchisee acknowledges and agrees that Franchisor or its Affiliates may be the sole designated supplier, manufacturer or distributor of certain required or non-required products, services, supplies, equipment, materials and Foods, Beverages or Products. Franchisee agrees to purchase from Franchisor or its Affiliates directly those items specified by Franchisor from time to time.
- 7.7. Franchisee Suppliers. 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.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to purchase certain items from designated suppliers to maintain quality and uniformity. Southern Steer specifies that franchisees must buy certain foods, beverages, products, FF&E (furniture, fixtures, and equipment), signage, marketing materials, third-party delivery services, and equipment exclusively from these designated suppliers. Southern Steer may also act as a designated supplier or have an affiliate act as a designated supplier.
The purpose of this requirement is to ensure that the products used in the Southern Steer business meet the franchisor's standards for quality and consistency. Some of these items may include proprietary ingredients necessary to produce food that meets Southern Steer's standards. The brand manual or other written communication from Southern Steer will specify these items.
If a franchisee wishes to use alternative suppliers or products, they must obtain written approval from Southern Steer. The franchisor will assess the proposed supplier's business reputation, quality standards, delivery performance, and credit rating. The franchisee may need to submit samples and information for review and testing, and may also be required to cover the costs of inspecting the supplier's facilities. Southern Steer retains the right to modify the list of required products, services, and designated or approved suppliers.