What is the latest that a Southern Steer franchisee can provide written notice to renew their franchise?
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, a franchisee seeking to renew their franchise agreement must provide written notice at least 180 days before the expiration of the current term. However, this notice cannot be provided more than 365 days before the expiration date. This means a franchisee has a window of approximately six months to submit their renewal notice.
In practical terms, a Southern Steer franchisee whose initial 10-year term is coming to an end needs to mark their calendar to ensure timely submission of their renewal notice. Missing this window could jeopardize their opportunity to continue operating the franchise. The franchisor requires this advance notice to assess the franchisee's compliance with the agreement and to plan for the future of the location, whether it remains with the current franchisee or transitions to a new operator.
Beyond the timing of the notice, Southern Steer requires that the franchisee must be in full compliance with all material terms and conditions of the current Franchise Agreement, including having paid all monetary obligations. The franchisee must also agree in writing to remodel the Southern Steer Business and provide evidence of their financial capability to cover these costs. The franchisee must also secure the right to continue occupying the premises for at least five additional years, pay the Successor Franchise Fee, execute a general release of claims against Southern Steer, and ensure that both the franchisee and their Designated Manager complete any required training. These stipulations are typical in franchise renewal agreements, as franchisors want to ensure that franchisees are committed to upholding brand standards and continuing successful operations.