Does the Southern Steer franchise agreement allow for renewal or extension of the term?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchise agreement allows for renewal or extension of the term. The initial franchise term is 10 years, beginning on the effective date, but can be extended under certain circumstances to coincide with the lease term for the Southern Steer business. Franchisees have the option to renew for one additional 10-year term.
To renew the Southern Steer franchise, franchisees must provide written notice at least 180 days but not more than 365 days before the expiration of the current term. They must also comply with all material terms and conditions of the existing Franchise Agreement and have paid all monetary obligations owed to Southern Steer during the term.
Additional requirements include agreeing in writing to remodel the Southern Steer business and providing evidence of the financial capability to do so. Franchisees must also have the right to continue occupying the premises for at least five additional years, pay the Successor Franchise Fee, and execute a general release of claims against Southern Steer and its related entities. Both the franchisee and their Designated Manager must complete required training. Upon renewal, franchisees will sign a new Successor Franchise Agreement, which may contain materially different terms and conditions than the original agreement. Franchisees must also maintain all necessary licenses, insurance, registrations, and approvals to operate the Southern Steer business in their protected area.