What efforts must a Southern Steer franchisee make to secure terms from the lessor?

According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee is expected to put forth their best effort to negotiate and secure specific terms and conditions from the lessor for their Franchised Location. These terms are detailed both within the franchise agreement and in the Form of Lease Addendum, which is attached to the agreement. The franchisee must provide Southern Steer with a copy of the proposed lease at least 30 days before signing. Southern Steer may assist in negotiating lease terms, but is not required to do so. Ultimately, the franchisee is responsible for all lease terms, including their enforceability, economics, and legality. The enforceability of the lease must be conditional on Southern Steer approving the franchisee. The franchisee cannot sign the lease until the franchise agreement is signed by both parties and the lease contains all required terms.

Furthermore, the lease terms must grant Southern Steer the right to enter the premises for inspections during regular business hours. The franchisee is also required to execute a Collateral Assignment of Lease, which assigns the franchisee's rights in the lease to Southern Steer in the event of termination or expiration of the franchise agreement, or a default under the lease. Executed copies of the lease or purchase closing documents must be provided to Southern Steer within 10 days after their execution. The franchisee must execute a lease that complies with these requirements within 90 days of the Effective Date of the franchise agreement.

Southern Steer also has rights related to the lease. Upon the franchisee's default, Southern Steer has the option to take an assignment of the franchisee's interest in the lease and re-assign or sublet it to a new franchisee without the lessor's consent. If Southern Steer does not elect to take assignment of the lease, the lessor will allow Southern Steer to enter the premises to remove signs and other items identifying the premises as a Southern Steer business in order to protect their marks and system. The lessor must acknowledge the franchisee's intention to operate a Southern Steer franchise and agree that the franchisee has the right to remodel and decorate the premises as required by the franchise agreement. The franchisee has the right to assign or sublet the lease to Southern Steer, its affiliates, or another franchisee without the lessor's consent.