What elements are included in the definition of 'Major Assets' for a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, the definition of 'Major Assets' includes several key components of the franchisee's business. These assets are significant because their transfer or sale is subject to specific conditions and franchisor rights as outlined in the franchise agreement. Understanding what constitutes a 'Major Asset' is crucial for a prospective franchisee, especially concerning potential future transactions or business changes.

The 'Major Assets' encompass the franchisee's Southern Steer Business itself, the physical Franchised Location, and the Lease for that location. Additionally, the definition includes all FF&E (furniture, fixtures, and equipment), inventory, the point-of-sale system, and any other assets used in the operation of the Southern Steer Business. This broad inclusion ensures that virtually all tangible and operational components of the business are considered 'Major Assets.'

Furthermore, the franchise agreement itself is classified as a 'Major Asset,' along with any Ownership Interest in the franchisee's business entity. If the franchisee owns the land, building, and related real estate used for the Southern Steer Business, these real estate holdings are also considered 'Major Assets'. This comprehensive definition highlights the importance Southern Steer places on controlling the transfer and disposition of its franchised businesses and associated assets. It also affects financing options, as the transfer of major assets to lenders is handled differently, with the exception of the franchise agreement itself.