How are the headings of sections in the Southern Steer Franchise Agreement to be interpreted?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
r any products or services purchased by the Franchisee from the Franchisor or any of its Affiliates.
- 30.20. FF&E. "FF&E" will mean the furniture, fixtures, supplies and equipment used in the operation of the Southern Steer Business.
- 30.21. Financial Records. "Financial Records" will mean all accounting records and ledgers maintained in a written form, on a computer disk, CD-ROM, portable computer memory device, or hard drive, and in any other electronic or other form including, but not limited to, sales ledgers, work papers, general ledgers, summaries, schedules, bank statements, cancelled checks, bank deposit slips, federal and state income tax returns, state sales tax returns, Financial Statements, daily cash register tapes, and other financial information.
- 30.22. Financial Statements. "Financial Statements" will mean a balance sheet, profit and loss statement, statement of cash flows, and explanatory footnotes prepared in accordance with generally accepted accounting principles applied on a consistent basis.
- 30.23. Fiscal Year. "Fiscal Year" will mean the Franchisee's fiscal year. The definition of Fiscal Year may be further defined in the Brand Manual and may in the future be changed by the Franchisor as specified in the Brand Manual or otherwise in writing by the Franchisor to address business practices and/or changes in the Internal Revenue Code.
- 30.24. Foods, Beverages and Products. "Foods, Beverages and Products" will mean the authorized and/or proprietary foods, food items, beverages, menu items, recipe ingredients, merchandise and FF&E that are specified in the Brand Manual or otherwise approved by the Franchisor in writing that are (a) used in the operation of the Southern Steer Business, (b) used in the preparation of any foods or food items, and/or (c) offered for sale to customers of the Southern Steer Business.
- 30.25. Franchise. "Franchise" will mean the right granted by the Franchisor to the Franchisee under this Agreement authorizing the Franchisee to operate a Southern Steer Business at the Franchised Location in conformity with the System using the name "Southern Steer Butcher" (as we designate) and the other Marks.
- 30.26. Franchised Location. "Franchised Location" will mean the address, city and state set forth in the Attachment A where the Southern Steer Business operated under this Agreement will be physically located.
- 30.27. Governmental Authority. "Governmental Authority" will mean any governmental department, commission, board, bureau, agency, court or other instrumentality of the United States including, but not limited to, federal, state, local, district or commonwealth thereof, any foreign government or any jurisdiction, municipality or other political subdivision thereof.
- 30.28. Gross Revenues. "Gross Revenues" will mean the total Dollar sales from all guests or customers of the Franchisee's Southern Steer Business, and will include all cash, credit card, and credit sales made by the Franchisee of every kind and nature made at, from, by or in connection with the Franchisee's Southern Steer Business including, but not limited to, all Dollars and income received from the following: (a) the sale of all Foods, Beverages and Products, including alcoholic and nonalcoholic beverages and drinks; (b) the sale of any and all goods, products, food items, merchandise or items sold at or through the Southern Steer Business, (c) the sale of any and all goods, products, food items, merchandise or items sold under any of the Marks; (d) all sales from the catering of Foods, Beverages and Products; (e) all sales from the delivery of Foods, Beverages and Products; (f) all sales of Foods, Beverages or Products for any banquet service; (g) all sales from the carry-out of Foods, Beverages and Products; (h) all sales of Foods, Beverages and Products at any locations or sites other than the Franchised Location; (i) all payments received from or for the redemption of gift cards and gift certificates by the Franchisee's Southern Steer Business; (j) all payments received from business interruption insurance payments made to the Franchisee by any insurance company;
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
Based on the 2025 Southern Steer Franchise Disclosure Document, the document defines various terms and their interpretation within the Franchise Agreement. These definitions clarify the obligations, rights, and restrictions applicable to both Southern Steer and the franchisee.
For instance, the term "Lease" refers to the written lease agreement for the Franchised Location, while "Major Assets" encompasses a wide range of items including the Southern Steer Business, the Franchised Location, the Lease, FF&E, inventory, point-of-sale system, the Franchise Agreement itself, ownership interests, FF&E leases, and potentially the land and building if owned by the franchisee. These definitions provide a clear understanding of what constitutes the core assets and agreements relevant to the franchise operation.
Other defined terms include "Management Staff," specifying who is considered part of the management team, and "Multi-Unit Development Agreement," which applies to franchisees with rights to develop multiple Southern Steer locations. The document also clarifies the meaning of "Non-Traditional Location," "Other Business," "Financial Statements," "Fiscal Year," "Foods, Beverages and Products," "Franchise," and "Franchised Location." These definitions ensure that both parties have a shared understanding of the key terms used throughout the Franchise Agreement, reducing potential for disputes and clarifying each party's responsibilities and rights.
These definitions play a crucial role in ensuring clarity and preventing misunderstandings regarding the scope and application of the Franchise Agreement. Prospective franchisees should carefully review these definitions to fully understand their rights and obligations under the agreement.