For a Southern Steer franchise, what factors does the Franchisor consider when approving a supplier?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.6.
Approved Suppliers.
Franchisee will purchase all products, services, supplies, equipment, materials and Foods, Beverages or Products required for the operation of Franchisee's Southern Steer Business from manufacturers, suppliers or distributors designated or previously approved by Franchisor.
Franchisee acknowledges and agrees that Franchisor or its Affiliates may be the sole designated supplier, manufacturer or distributor of certain required or non-required products, services, supplies, equipment, materials and Foods, Beverages or Products.
Franchisee agrees to purchase from Franchisor or its Affiliates directly those items specified by Franchisor from time to time.
- 7.7.
Franchisee Suppliers.
If Franchisee desires to use different foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products or desires to purchase foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers Franchisee must first obtain Franchisor's approval in writing.
Any suppliers proposed by Franchisee must conform to the Franchisor's standards and specifications and Franchisor must first determine that the supplier's business reputation, quality standards, delivery performance, credit rating, and other criteria meet Franchisee standards and specifications.
The Franchisor may deny or revoke the Franchisor's approval of any supplier at any time based upon the lack of any of the above items.
If the Franchisee desires to purchase any required foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers which are not Approved Suppliers, then the Franchisee must, at its expense, submit samples, specifications, and product information requested by the Franchisor, for review and testing to determine whether these foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products comply with the Franchisor's standards and specifications.
The Franchisor will also have the right to inspect the facilities of the proposed supplier, and the Franchisee will reimburse the Franchisor for the costs and expenses incurred to conduct the inspection.
The Franchisor will complete all testing and will notify the Franchisee of its determination within 30 days after the Franchisor completes its testing, inspection and evaluation process.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, if a franchisee desires to use different foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products or desires to purchase foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers, they must first obtain Southern Steer's approval in writing.
Southern Steer requires that any suppliers proposed by the franchisee conform to their standards and specifications. Southern Steer must first determine that the supplier's business reputation, quality standards, delivery performance, and credit rating meet their standards and specifications. Southern Steer retains the right to deny or revoke approval of any supplier at any time if the supplier fails to meet any of these criteria.
If a franchisee wants to purchase any required items from suppliers that are not already approved, they must submit samples, specifications, and product information for review and testing, at their own expense. This is to determine whether the items comply with Southern Steer's standards and specifications. Southern Steer also has the right to inspect the facilities of the proposed supplier, with the franchisee responsible for reimbursing Southern Steer for the costs and expenses incurred during the inspection. Southern Steer will complete all testing and notify the franchisee of its determination within 30 days after completing its testing, inspection, and evaluation process.