What is the length of the additional term for a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure 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 |
| Provision | Agreement | Summary Franchise Agreement. |
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, the franchise agreement has an initial term of 10 years. If a franchisee meets certain requirements, they are eligible for one additional term. This additional term is also 10 years.
To be eligible for a renewal, the franchisee must provide written notice between 180 and 365 days before the expiration of the current term. They must also be in full compliance with the existing Franchise Agreement, including having met all financial obligations.
Furthermore, the franchisee must agree to remodel their Southern Steer Business and demonstrate the financial capability to cover these costs. They need to secure the right to occupy the premises for at least five more years. A Successor Franchise Fee must be paid, and a general release of claims against Southern Steer and its affiliates must be executed. Both the franchisee and their Designated Manager must complete any required additional training. Finally, the franchisee will be required to sign a new Successor Franchise Agreement, which may contain terms and conditions that differ significantly from the original agreement. The franchisee must also maintain all necessary licenses, insurance, registrations, and approvals to operate the Southern Steer Business.