Can a franchisee disclaim reliance on statements made by Southern Steer when commencing a franchise relationship?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor does not make any representations or warranties, express, implied or collateral, as to the potential success of Franchisee's Southern Steer Business and no one is authorized to make any such representations or warranties.
Franchisor makes no representations or warranties that the required minimum insurance is adequate to protect Franchisee and Franchisor.
Franchisor does not furnish or authorize any parties to furnish any oral or written information concerning the actual or potential sales, costs, income, or profits of Franchisee's Southern Steer Business outside the franchise disclosure document and Franchisee has not received or relied upon any warranty, representation or guarantee, expressed, collateral or implied, as to the potential volume, profits, Gross Revenues, income, estimates, projections, or success of the Southern Steer Business contemplated by this Agreement outside the franchise disclosure document.
Actual results will vary among franchisees and Franchisor cannot estimate the results of any particular Southern Steer Business.
Franchisee acknowledges that no approvals, consents, waivers, conditions, or the like by Franchisor are an endorsement by Franchisor or a warranty by Franchisor of the success of Franchisee's Southern Steer Business or the appropriateness of the particular items, persons, or matters so approved.
Franchisee further acknowledges, understands and accepts that Franchisee is not relying on Franchisor's or its Affiliates approvals, consents, waivers or the like.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees acknowledge that Southern Steer does not provide any guarantees regarding the potential success of the franchisee's business. Furthermore, no one is authorized to make such representations or warranties on behalf of Southern Steer.
Franchisees confirm that they have not relied on any warranty, representation, or guarantee, whether expressed, collateral, or implied, regarding the potential volume, profits, gross revenues, income, estimates, projections, or overall success of the Southern Steer business, except as explicitly stated in the franchise disclosure document. The FDD emphasizes that actual results will vary among franchisees, and Southern Steer cannot estimate the results for any specific business.
This disclaimer extends to approvals, consents, or waivers granted by Southern Steer, which are not considered endorsements or warranties of success. Franchisees acknowledge that they are not relying on Southern Steer's approvals, consents, or waivers. This provision aims to ensure that franchisees understand the risks involved and make informed decisions based on their own independent investigation and due diligence, rather than relying on projections or assurances from Southern Steer that are not explicitly documented in the FDD.