For a Southern Steer franchise, does the definition of 'Approved Supplier' include consideration of the supplier's credit rating?

According to the 2025 Southern Steer Franchise Disclosure Document, the definition of an 'Approved Supplier' does include consideration of the supplier's credit rating. Specifically, to be considered an approved supplier, the franchisor must determine that the supplier's business reputation, quality standards, delivery performance, credit rating, and other factors are satisfactory.

This means that if a Southern Steer franchisee wishes to use a supplier not already approved by the franchisor, that supplier's credit rating will be evaluated as part of the approval process. The franchisor has the right to deny or revoke approval of any supplier if their credit rating, or other factors, do not meet Southern Steer's standards.

This requirement ensures that all suppliers meet the standards and specifications established by Southern Steer. It also helps to maintain the quality and uniformity of products and services provided to customers, protecting the brand's reputation. The franchisee bears the expense of submitting samples, specifications, and product information for review and testing by the franchisor to determine compliance with these standards.