Where does the Southern Steer Franchise Agreement require negotiation, non-binding mediation, and binding arbitration to take place?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.5.
Forum.
THE MEDIATION AND ARBITRATION PROCEEDING WILL TAKE PLACE IN CLEARWATER, FLORIDA OR THE CITY NEAREST FRANCHISOR'S PRINCIPAL PLACE OF BUSINESS AT THE TIME AS DETERMINED BY FRANCHISOR, AS THE CASE MAY BE, UNLESS THE PARTIES MUTUALLY AGREE TO ANOTHER LOCATION.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the required location for mediation and arbitration proceedings is Clearwater, Florida, or the city nearest to Southern Steer's principal place of business at the time, as determined by Southern Steer. However, this is subject to change if both parties mutually agree to an alternative location.
This clause ensures that any disputes arising between the franchisee and Southern Steer will be addressed in a location convenient for the franchisor, unless an alternative agreement is reached. This could potentially create a financial burden for franchisees who do not reside near Clearwater, Florida, as they would incur travel and accommodation expenses to attend mediation and arbitration proceedings.
It is important for prospective Southern Steer franchisees to consider this requirement and factor in potential travel costs when evaluating the franchise opportunity. Franchisees should also be aware of their right to attempt to negotiate an alternative location for mediation and arbitration, although Southern Steer's agreement is required for any change.