Is a Southern Steer franchisee required to remodel their business as a condition of renewal?
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 agree in writing to remodel their Southern Steer business as a condition of renewal. They must also provide evidence of their financial capability to cover the costs of the remodel. This requirement is part of a list of conditions that franchisees must meet to be eligible for a renewal of their franchise agreement.
In addition to agreeing to remodel and demonstrating financial capability, franchisees must also provide written notice of their intent to renew at least 180, but not more than 365, days before the expiration of their current term. They must also be in full compliance with all material terms and conditions of their existing Franchise Agreement and have paid all outstanding monetary obligations to Southern Steer during the current term.
Furthermore, franchisees must have the legal right to continue occupying the premises of their Southern Steer business for at least five additional years beyond the renewal date. They are also required to pay the Successor Franchise Fee, execute a general release of claims against Southern Steer and its related entities, and ensure that both the franchisee and their Designated Manager complete any required additional training. Finally, franchisees will be required to sign a new Successor Franchise Agreement, which Southern Steer notes may contain terms and conditions that are materially different from the original agreement.