Does the Franchisor have an obligation to establish an Online Ordering/Delivery System for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Online Ordering System.
The Franchisor reserves the right to establish and/or facilitate a branded digital ordering, third-party delivery services and payment software platform ("Online Ordering/Delivery System") for the purpose of enhancing customer service throughout the System.
The Franchisee hereby agrees to participate in such Online Ordering/Delivery System at the Southern Steer Business.
Accordingly, the Franchisee agrees to comply with all requirements established by the Franchisor in connection with the Online Ordering/Delivery System as set forth in the Brand Manual.
The Franchisee acknowledges and agrees that the Franchisor reserves the right to establish such an Online Ordering/Delivery System and has no obligation to do so.
The Franchisee further acknowledges and agrees that the Franchisor also reserves the right to modify or discontinue any such Online Ordering /Delivery System once it has been established.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer is not obligated to establish an Online Ordering/Delivery System. However, Southern Steer reserves the right to establish and/or facilitate a branded digital ordering, third-party delivery services and payment software platform for the purpose of enhancing customer service throughout the System. If Southern Steer establishes such a system, franchisees are required to participate and comply with all requirements set forth in the Brand Manual. Southern Steer also reserves the right to modify or discontinue any Online Ordering /Delivery System once it has been established.
This means that while Southern Steer franchisees may benefit from a potential online ordering system, they cannot rely on it being available. Southern Steer retains full control over whether such a system exists, how it functions, and whether it continues to operate. This is a significant consideration for prospective franchisees, as online ordering and delivery can be crucial for attracting and retaining customers in today's market. Franchisees need to be prepared to adapt if Southern Steer decides not to implement or later discontinues the Online Ordering/Delivery System.
It is common for franchisors to maintain control over online ordering and delivery systems to ensure brand consistency and quality control. However, the lack of obligation to establish such a system places more risk on the franchisee, who may need to find alternative ways to compete in the market if Southern Steer does not provide this service. Prospective franchisees should inquire about Southern Steer's plans for online ordering and delivery, and consider the potential impact on their business if such a system is not available or is discontinued.