How long is the initial term of the Southern Steer franchise agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
2.1. Term. The initial term ("Initial Term") of this Agreement will commence on the Effective Date and will be for a period of 10 years, unless terminated sooner in accordance with this Agreement. The Initial Term may be extended under certain circumstances to coincide with the term of the lease for Franchisee's Southern Steer Business. This Agreement will not be enforceable until it has been signed by both the Franchisee and the Franchisor.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the initial term of the franchise agreement is 10 years, commencing on the effective date of the agreement. The agreement can be terminated earlier under certain circumstances as outlined in the agreement.
Notably, the initial term may be extended to coincide with the term of the lease for the franchisee's Southern Steer business. This provision ensures that the franchise agreement aligns with the lease term, providing stability for the franchisee's operations.
At the end of the initial term, a franchisee in good standing has the option to operate the Southern Steer Business for an additional term. To qualify, the franchisee must meet specific conditions, including compliance with the agreement's terms, absence of default on the lease, satisfaction of all monetary obligations, and adherence to default limits. The franchisee must provide written notice to exercise this option within a specified timeframe before the initial term expires.