What is the earliest that a Southern Steer franchisee can provide written notice to renew their franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD 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 |
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, a franchisee seeking to renew their franchise agreement must provide written notice to Southern Steer at least 180 days before the expiration of the current term. However, this notice cannot be given more than 365 days before the current term expires. This means the earliest a franchisee can provide notice is 365 days prior to the expiration date.
In practical terms, this requirement ensures that Southern Steer is given ample time to assess the franchisee's compliance with the franchise agreement and to plan for the future of the franchise location. It also allows the franchisee sufficient time to prepare for the renewal process, which includes potential remodeling, training, and financial obligations.
It is important to note that providing timely written notice is only one of several conditions a franchisee must meet to be eligible for renewal. Other conditions include compliance with all material terms of the existing agreement, payment of all outstanding monetary obligations, agreement to remodel the Southern Steer Business, demonstration of financial capability for remodeling, securing the premises for at least five more years, paying a successor franchise fee, executing a general release of claims, and completing required training. Failure to meet any of these conditions could result in the denial of the renewal application.