What happens if the Southern Steer franchisee defaults under the lease?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
g International, LLC 35246 US HWY 19N #219 Palm Harbor, FL 34684Attention: Greg Snyder
Phone: (727) 501-3541
Franchisor may change its address for receiving notices by giving Lessor written notice of the new address. Lessor agrees that it will notify both Lessee and Franchisor of any change in Lessor's mailing address to which notices should be sent.
(c) Following Franchisor's approval of the Lease (together with this Addendum), Lessee agrees not to terminate, or in any way alter or amend the same during the Term of the Franchise Agreement or any extension thereof without Franchisor's prior written consent, which will be granted or denied in Franchisor's sole discretion, and any attempted termination, alteration or amendment will be null and void and have no effect as to Franchisor's interests thereunder.
4. Termination or Expiration.
- (a) Upon Lessee's default and failure to cure the default within the applicable cure period, if any, under either the Lease or the Franchise Agreement, Franchisor will, at its option, have the right, but not the obligation, to take an automatic assignment of Lessee's interest and at any time thereafter to re-assign or sublet the Lease to a new franchisee without Lessor's consent and to be fully released from any and all liability to Lessor upon the reassignment, provided Franchisee agrees to assume Lessee's obligations and the Lease.
- (b) Upon the expiration or termination of either the Lease or the Franchise Agreement, Lessor will cooperate with and assist Franchisor in securing possession of the Premises and if Franchisor does not elect to take an assignment of the Lessee's interest, Lessor will allow Franchisor to enter the Premises, without being guilty of trespass and without incurring any liability to Lessor, to remove all signs and all other items identifying the Premises as a Franchised Southern Steer Business and to make other modifications (such as repainting) as are reasonably necessary to protect the "Southern Steer Butcher" marks and system, and to distinguish the Premises from a Franchised Southern Steer Business. In the event Franchisor exercises its option to purchase assets of Lessee, Lessor will permit Franchisor to remove all the assets being purchased by Franchisor.
5. Consideration; No Liability.
- (a) Lessor hereby acknowledges that the provisions of this Addendum to Lease are required pursuant to the Franchise Agreement under which Lessee plans to operate its Franchised Southern Steer Business and Lessee would not lease the Premises without this Addendum. Lessor also hereby consents to the Collateral Assignment of Lease from Lessee to Franchisor as evidenced by Attachment G-1.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, several consequences can arise if a franchisee defaults on their lease. Southern Steer, as the franchisor, has the option to take over the lease if the franchisee defaults and fails to correct it within the specified cure period. This allows Southern Steer to maintain control of the location and potentially reassign or sublet the lease to a new franchisee. The franchisee assigns their rights to the lease to Southern Steer as security for fulfilling the franchise agreement terms. If an event of default occurs, Southern Steer can assume the lease for the remaining term under the original conditions. An event of default includes the lease being terminated by either the landlord or the franchisee for any reason. Southern Steer is not responsible for the franchisee's past-due obligations under the lease.
If the lease or franchise agreement expires or terminates, the landlord must assist Southern Steer in regaining possession of the premises. If Southern Steer does not take over the lease, they can enter the premises to remove signs and other items identifying it as a Southern Steer franchise and make necessary modifications to protect their brand and system. If Southern Steer chooses to purchase the franchisee's assets, the landlord must allow them to remove those assets.
Furthermore, the FDD states that the termination or cancellation of the lease for non-payment of rent or other legal reasons, or the franchisee being evicted from the location, constitutes an immediate default under the franchise agreement. This allows Southern Steer to terminate the agreement without prior notice or an opportunity to cure the default. This clause underscores the importance of franchisees maintaining good standing with their landlords to avoid jeopardizing their franchise agreement.