Must the Designated Manager complete required training for Southern Steer franchise renewal?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
| Provision | Agreement | Summary Franchise Agreement. |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, to renew the franchise agreement for an additional 10-year term, both the franchisee and their Designated Manager must complete the required training. This is one of several conditions that must be met to be eligible for renewal.
Other conditions include providing written notice of intent to renew at least 180 but not more than 365 days before the current term expires, complying with all material terms of the existing Franchise Agreement, and paying all outstanding monetary obligations. The franchisee must also agree in writing to remodel their Southern Steer business and provide evidence of the financial capability to do so, have the right to continue occupying the premises for at least five more years, pay the Successor Franchise Fee, and execute a general release of claims against Southern Steer.
Furthermore, upon renewal, the franchisee will be required to sign a new Successor Franchise Agreement, which may contain terms and conditions that differ significantly from the original agreement. The franchisee must also maintain all necessary licenses, insurance, registrations, and approvals required to operate the Southern Steer business in their protected area. This ensures that both the franchisee and the Designated Manager are up-to-date with Southern Steer's current standards and practices.