What information is the Franchisee required to provide to Southern Steer for the proposed site?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
for the Franchisee's Southern Steer Business. The Franchisor recommends that the Franchisee retain an experienced attorney to provide advice and counsel on the terms, conditions and economics of the legal and other documents required to lease or purchase the site for the Franchised Location.
- 5.2. Site Information. The Franchisee will provide to the Franchisor the information specified by the Franchisor in writing for the proposed site ("Site Information"). The Franchisor will have the right to require that the Franchisee obtain, at the Franchisee's expense, an economic feasibility study for the proposed site for the Franchised Location. Any such feasibility study required by the Franchisor will be completed by an expert mutually agreed upon by the Franchisor and the Franchisee in writing. The Franchisor will review the Site Information and the Franchisee will not purchase or lease a proposed site until the Franchisee has provided the Site Information to the Franchisor, the Franchisor has reviewed the Site Information, and the Franchisor has provided the Franchisee with a no-objection letter for the proposed site. The review of any Site Information, any visits by the Franchisor to a proposed site, the review of the site, and/or the issuance of a no-objection letter by the Franchisor will not constitute a warranty or representation by the Franchisor or any other party that the site for the Franchised Location chosen by the Franchisee will be a financial or operational success. The issuance of a no-objection letter by the Franchisor will only mean that it has received the Site Information provided by the Franchisee and reviewed the Site Information.
- 5.3. Purchase or Lease of Site. The Franchisee will provide the Franchisor with a copy of the proposed Lease for the site of the Franchised Location selected by the Franchisee at least 30 days before the date the Lease is to be signed. The Franchisor may, but is not required, to assist the Franchisee in negotiating the terms of the Lease. The Franchisor's review of the Lease will be only to determine whether the terms of the Lease comply with the terms and conditions of this Agreement, and not to provide any business, economic, legal or real estate advice or analysis. The Franchisee will be solely responsible for all terms of the Lease, including the enforceability, economics and legality of all provisions in the Lease. The enforceability of the Lease must be conditioned on Franchisor approving the Franchisee as a Southern Steer Franchisee and the enforceability of this Agreement. The Franchisee will not sign the Lease until (a) this Agreement has been signed by both the Franchisee and the Franchisor; and (b) the Lease contains the terms required under this Section and the terms set forth in the Form of Lease Addendum attached to this Agreement as Attachment F. The Franchisee will use its best efforts to negotiate and secure from the lessor of the Franchised Location the terms and conditions set forth herein and in the Form of Lease Addendum attached hereto. In addition, the terms of the Lease must also give the Franchisor the right to enter the premises of the Franchised Location to conduct inspections during regular business hours. Further, the Franchisee must execute a Collateral Assignment of Lease attached to this Agreement as Attachment F-1, whereby the Franchisee agrees to assign the Franchisee's rights in the Lease to the Franchisor in the event of a termination or expiration of the term of this Agreement or a default under the Lease.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are responsible for selecting their business location. To assist Southern Steer in evaluating the site, franchisees must provide specific information, termed "Site Information," as requested in writing by Southern Steer. Southern Steer can also require the franchisee to obtain an economic feasibility study for the proposed site, conducted by an expert agreed upon by both parties, at the franchisee's expense. The franchisee cannot finalize the purchase or lease of a site until Southern Steer reviews the Site Information and issues a no-objection letter.
Southern Steer's review and no-objection letter do not guarantee the site's financial or operational success; it only confirms that Southern Steer has received and reviewed the provided Site Information. Additionally, at least 30 days before signing a lease, franchisees must provide Southern Steer with a copy of the proposed lease for the selected site.
Southern Steer may assist in negotiating the lease terms, but this is not required. Southern Steer's review of the lease is limited to ensuring compliance with the Franchise Agreement, not providing business, economic, legal, or real estate advice. The franchisee is solely responsible for all lease terms, including their enforceability, economics, and legality. The enforceability of the lease must be conditional on Southern Steer approving the franchisee and the Franchise Agreement. The franchisee must also ensure the lease gives Southern Steer the right to conduct inspections during business hours and execute a Collateral Assignment of Lease, assigning the franchisee's rights to Southern Steer upon termination or expiration of the agreement or a default under the lease. Executed copies of the lease or purchase closing documents must be provided to Southern Steer within 10 days of execution, and the franchisee must execute a compliant lease within 90 days of the Effective Date.
Prospective franchisees should note that Southern Steer offers site criteria for a franchised location and reviews the franchisee's site information. However, Southern Steer disclaims any duty or obligation to assist in site selection or provide assistance in purchasing or leasing the location. The franchisee releases Southern Steer from any claims related to the site selection or lease. This arrangement is typical in franchising, where the franchisee usually bears the responsibility for finding a suitable location, while the franchisor retains approval rights to protect brand consistency and operational standards.