Is a Southern Steer franchisee required to pay a Successor Franchise Fee to renew?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD 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. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
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, franchisees must pay a Successor Franchise Fee if they choose to renew their franchise agreement for an additional term. The initial franchise term is 10 years, and franchisees have the option to renew for one additional 10-year term.
To renew their Southern Steer franchise, franchisees must meet several requirements. These include providing written notice of their intent to renew within a specific timeframe (180 to 365 days before the expiration of the current term), complying with all material terms and conditions of the existing Franchise Agreement, and fulfilling all monetary obligations owed to Southern Steer during the current term.
In addition to these requirements, franchisees must agree in writing to remodel their Southern Steer Business and provide evidence of their financial capability to cover the costs of the remodel. They must also have the legal right to continue occupying the premises for at least five more years. Furthermore, franchisees are required to execute a general release of claims against Southern Steer and related parties, and both the franchisee and their Designated Manager must complete any required training. Finally, the franchisee will be required to sign a new Successor Franchise Agreement, which may contain terms and conditions that differ significantly from the original agreement.