Where can I find the provisions related to the acquisition of the Southern Steer business by the Franchisor?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor's Right to Acquire the Southern Steer Business.
In addition to all of the other rights granted to Franchisor in this Section 20 upon termination of this Agreement, Franchisor has the right to acquire all right, title and interest in the assets of the Franchisee's Southern Steer Business, including all real property owned by Franchisee or its Affiliates (if Franchisee has opened the Southern Steer Business pursuant to an Multi-Unit Development Agreement between Franchisee's Affiliate and Franchisor) from which the Southern Steer Business is operated.
Franchisor must notify Franchisee of its intention to acquire the Southern Steer Business at the time Franchisor sends the final notice of termination and must comply with all other provisions related to the acquisition set forth in the Brand Manual.
In addition, the parties agree that the purchase price for the Southern Steer Business will be calculated in accordance with the terms and procedures set forth in the Brand Manual.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the provisions related to the franchisor's right to acquire the Southern Steer business can be found in Section 20.8. This section outlines that upon termination of the Franchise Agreement, Southern Steer has the right to acquire all rights, title, and interest in the assets of the franchisee's Southern Steer Business. This includes any real property owned by the franchisee or its affiliates from which the Southern Steer Business is operated, especially if the franchisee opened the business under a Multi-Unit Development Agreement.
Southern Steer must notify the franchisee of its intent to acquire the Southern Steer Business when it sends the final notice of termination. The franchisor must also comply with all other provisions related to the acquisition as detailed in the Brand Manual. The purchase price for the Southern Steer Business will be calculated according to the terms and procedures specified in the Brand Manual.
This means that as a potential franchisee, you should carefully review Section 20.8 of the Franchise Agreement and the relevant sections of the Brand Manual to fully understand the conditions under which Southern Steer can acquire your business, how the purchase price will be determined, and what your rights and obligations are in such a scenario. Understanding these provisions is crucial before entering into a franchise agreement with Southern Steer.