What is the financial threshold for legal proceedings related to a Southern Steer Franchised Location that requires notification to the Franchisor?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
aurants on 30 days' prior written notice. All catering and delivery services and wholesale to restaurants must comply with the Franchisor's standards, policies and requirements set forth in the Brand Manual or otherwise in writing by the Franchisor. Franchisor may require Franchisee to participate in a third-party delivery service program.
- (p) Default Notices and Significant Correspondence. The Franchisee will deliver to the Franchisor, immediately upon receipt by the Franchisee or delivery at the Franchised Location, an exact copy of all (i) notices of default received from the landlord of the Franchised Location or any mortgagee, trustee under any deed of trust, contr
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee must notify Southern Steer of any legal proceedings related to their franchised location if the claim exceeds $10,000. This notification must be immediate upon the franchisee receiving notification or delivery of the legal proceeding at the franchised location.
This requirement ensures that Southern Steer is promptly informed of any significant legal issues that could affect the franchise or the brand's reputation. It allows Southern Steer to offer support, assess potential risks, and protect its interests. The franchisee must provide an exact copy of the notification or correspondence related to the legal proceeding.
For a prospective Southern Steer franchisee, this means maintaining meticulous records and having a system in place to quickly identify and report any legal claims that surpass the $10,000 threshold. Failure to do so could result in a breach of the franchise agreement. This also highlights the importance of having adequate insurance coverage and legal counsel to manage potential claims effectively.