Where can I find the terms and procedures for calculating the purchase price for the Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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 terms and procedures for calculating the purchase price of a Southern Steer business are detailed within the Brand Manual. Specifically, Section 20.8, which addresses the franchisor's right to acquire the Southern Steer business upon termination of the franchise agreement, states that the purchase price will be calculated according to the terms and procedures outlined in the Brand Manual.
This means that prospective franchisees need to carefully review the Brand Manual to understand how the value of their Southern Steer franchise will be determined if Southern Steer decides to purchase the business, particularly upon termination of the agreement. The Brand Manual is a critical document that outlines the operational standards, policies, and procedures for running a Southern Steer franchise, and it also governs the financial aspects of the relationship between the franchisee and franchisor.
It is important for potential franchisees to understand the specific methodologies used to calculate the purchase price, as these can significantly impact the financial outcome of a sale. This includes understanding what assets are included in the purchase, how inventory and equipment are valued, and whether factors like goodwill or brand recognition are considered. Prospective franchisees should consult with a franchise attorney or financial advisor to fully understand the implications of these terms and procedures before signing the franchise agreement.