Does Southern Steer's failure to provide a particular initial or continuing service excuse the franchisee from their obligations?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Notice. If Franchisee believes Franchisor has failed to adequately provide pre-opening and opening services to Franchisee as provided in this Agreement, including Sections 10.2 and 10.3, Franchisee will notify Franchisor in writing within 30 days following the completion of such services provided. Absent the timely provision of such notice to Franchisor, Franchisee will be deemed to conclusively acknowledge that all pre-opening and opening services required to be provided by Franchisor were sufficient and satisfactory in Franchisee's judgment.
- (b) Level Of Service. Franchisor is not obligated to perform services set forth in this Agreement to Franchisee particular level of satisfaction, but as a function of Franchisor's experience, knowledge and Reasonable Business Judgment. Franchisor does not represent or warrant that any other services will be provided to Franchisee, other than as set forth in this Agreement. To the extent any other services, or any specific level or quality of service is expected, Franchisee must obtain a commitment to provide such service or level of service in writing signed by an authorized officer of Franchisor, otherwise Franchisor will not be obligated to provide any other services or specific level or quality of services.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a franchisee believes that Southern Steer has failed to adequately provide pre-opening and opening services, the franchisee must notify Southern Steer in writing within 30 days following the completion of such services. If the franchisee does not provide timely notice, the franchisee will be deemed to have acknowledged that all pre-opening and opening services required to be provided by Southern Steer were sufficient and satisfactory.
Southern Steer is not obligated to perform services to the franchisee's particular level of satisfaction, but rather as a function of Southern Steer's experience, knowledge, and reasonable business judgment. Southern Steer does not represent or warrant that any other services will be provided other than as set forth in the agreement. If any other services or any specific level or quality of service is expected, the franchisee must obtain a commitment to provide such service or level of service in writing signed by an authorized officer of Southern Steer. Otherwise, Southern Steer will not be obligated to provide any other services or specific level or quality of services.
This means that a Southern Steer franchisee cannot simply claim dissatisfaction with the services provided to excuse their obligations under the franchise agreement. They must provide written notice of any deficiencies within 30 days of service completion. Furthermore, Southern Steer's performance is judged against its own reasonable business judgment, not the franchisee's expectations, unless those expectations are documented in writing and signed by an authorized officer of Southern Steer. This places the onus on the franchisee to proactively address any service concerns and obtain written commitments for specific service levels to ensure they receive the support they deem necessary.