For how many additional years must a Southern Steer franchisee have the right to occupy the premises to renew?
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 must have the right to occupy the premises for at least five additional years to be eligible for renewal. This requirement is outlined as one of several conditions a franchisee must meet to renew their franchise agreement for an additional term.
In practical terms, this means that if a franchisee's current lease on their Southern Steer location is set to expire before the end of the potential renewal term, they must secure an extension or a new lease that covers at least five years beyond the start of the renewal term. This ensures that the franchisee can continue operating the Southern Steer business at that location if the renewal is granted.
This requirement protects Southern Steer by ensuring that franchisees seeking to renew have a secure location for the duration of the renewal term. It also provides assurance to the franchisee that they will be able to continue operating their business without the disruption of having to relocate. Franchisees should carefully consider the terms of their lease and plan accordingly to meet this requirement when seeking to renew their Southern Steer franchise.