Is the franchisee or franchisor responsible for determining the necessary licenses and permits for operating a Southern Steer business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Required Licenses and Permits.
The Franchisee will, at its expense, be solely and exclusively responsible for determining the licenses and permits required by applicable law for the Franchisee's Southern Steer Business, for obtaining and qualifying for all licenses and permits, and for compliance with all applicable laws by its employees, Executive Management, agents and independent contractors.
The Franchisor makes no representations or assurances as to what (if any) licenses, permits, authorizations or otherwise may be required in connection with the Southern Steer Business.
It is the Franchisee's sole responsibility to identify and obtain all authorizations necessary to operate the Southern Steer Business.
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 franchisee is responsible for determining and obtaining the necessary licenses and permits to operate their Southern Steer business. The franchisee bears the expense and exclusive responsibility for identifying, obtaining, and qualifying for all required licenses and permits. This includes ensuring compliance with all applicable laws by their employees, executive management, agents, and independent contractors. Southern Steer makes no guarantees regarding what specific licenses, permits, or authorizations may be needed.
This means that prospective Southern Steer franchisees must conduct thorough due diligence to understand the legal and regulatory requirements for operating a Southern Steer business in their chosen location. This includes researching federal, state, and local laws related to health and food service, liquor licenses, health and safety, menu disclosure, environmental regulations, employment, credit card processing, and taxes. Franchisees should consult with legal and business professionals to ensure they meet all obligations.
The franchisee is also responsible for complying with all federal, state, and local laws, ordinances, statutes, and building codes, and for acquiring all licenses and building, occupancy, and other permits required by law in connection with the construction or renovation of the Franchisee's Southern Steer Business at the Franchised Location. Southern Steer has no responsibility if the Southern Steer Business is not constructed or renovated by the Franchisee or its architect or contractor according to the specifications established by Southern Steer, in compliance with all applicable federal, state or local laws or ordinances, or in a workmanlike manner.
Given this responsibility, prospective franchisees should carefully consider the costs and complexities associated with securing the necessary licenses and permits. Failure to obtain the required authorizations can result in delays in opening, fines, or even the inability to operate the Southern Steer business. It is crucial to factor in these potential costs and challenges when evaluating the overall investment and feasibility of a Southern Steer franchise.