Is a Southern Steer franchisee required to purchase computer hardware from designated suppliers?

According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are required to purchase specific computer hardware from designated suppliers. This includes the POS system, which encompasses computer hardware, iPads, guest check printers, credit card terminals, printers, and modems. Additionally, franchisees must purchase gift cards from these designated suppliers. This requirement ensures uniformity and compatibility within the Southern Steer system. Franchisees are also obligated to pay monthly Technology and POS System Fees.

This requirement is typical in many franchise systems, as it allows the franchisor to maintain consistency and quality control across all locations. By mandating the use of specific hardware and software, Southern Steer can ensure that all franchisees are using compatible systems, which can simplify technical support and data management. However, it also means that franchisees have limited flexibility in choosing their own equipment and must adhere to the franchisor's designated suppliers, potentially impacting costs.

While franchisees are required to purchase the POS system and related hardware from designated suppliers, they do have the option to request approval for alternate suppliers for other goods, supplies, and services. However, this process requires written approval from Southern Steer, submission of samples or specifications, and potentially bearing the cost of inspections and evaluations. Southern Steer retains the right to re-inspect and revoke approval if a supplier fails to meet their standards. This process provides a mechanism for franchisees to potentially find more cost-effective or suitable suppliers, but it also involves additional effort and the risk of disapproval.