How long does Southern Steer have to respond to a franchisee's offer to sell?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchisee or the Owners desire to Transfer their Ownership Interests, then they will first offer the Ownership Interests in the Franchisee to the Franchisor in writing under the same terms and conditions as those being offered to any party.
The Franchisor will have 30 days to accept any offer to purchase the Owner's Ownership Interest in the Franchisee.
The Owner will be required to comply with the provisions of Section 18.6 if the Franchisor does not exercise its right to purchase the Owner's Ownership Interest.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer has 30 days to respond to a franchisee's offer to sell their ownership interests. Specifically, the franchisee must first offer their ownership interests to Southern Steer in writing, including the same terms and conditions as offered to any other party.
Southern Steer then has 30 days to either accept or reject the offer to purchase the ownership interest. If Southern Steer does not exercise its right to purchase the ownership interest, the owner must comply with the provisions outlined in Section 18.6 of the franchise agreement.
This clause ensures that Southern Steer has the first option to buy back a franchise location before it is sold to a third party. This is a common practice in franchising that allows the franchisor to maintain control over its brand and the quality of its franchisees.