Must a Southern Steer franchisee have all required licenses to renew the franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee must have all required licenses, insurance, registrations, and approvals to renew their franchise agreement. Specifically, the franchisee must possess all items required by Southern Steer and applicable governing authorities to operate the Southern Steer Business in the Protected Area. This is one of several conditions that must be met to be eligible for a renewal term.
To renew the Southern Steer franchise agreement for an additional 10-year term, franchisees must meet several requirements. These include providing written notice within a specific timeframe, complying with all material terms of the current agreement, fulfilling all monetary obligations, agreeing to remodel the business, securing the premises for at least five more years, paying a successor franchise fee, and releasing claims against Southern Steer. Both the franchisee and their designated manager must also complete required training.
It is important to note that upon renewal, franchisees will sign a new Successor Franchise Agreement, which may contain materially different terms and conditions than the original agreement. This means that while a franchisee may meet all the renewal requirements, the terms of the new agreement could significantly impact their business operations and profitability. Prospective franchisees should carefully consider these factors and seek legal counsel to fully understand the implications of renewing their franchise agreement with Southern Steer.