During negotiation, are Southern Steer franchisees and franchisor allowed to seek legal counsel?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has advised Franchisee to consult with advisers of Franchisee's own choosing.
Franchisee have been given ample time to do so before signing this Agreement.
Franchisee has conducted an independent investigation of the Southern Steer Business contemplated by this Agreement and recognize that the success of Franchisee's Southern Steer Business is speculative, involves a high degree of financial risk and depends, to a large extent, upon Franchisee's ability as an independent business person and Franchisee's skills, initiative, hard work and other factors.
Franchisee understands that Franchisee may sustain losses as a result of the operation or the closing of Franchisee's Southern Steer Business.
Franchisee represents and warrants that Franchisee engaged Franchisee's own legal advisors who are licensed in the Protected Area and who specialize in franchise law to ensure that Franchisee understands Franchisee's obligations under this Agreement and all applicable law(s).
Franchisee further represents and warrants that Franchisee has engaged its own legal advisors to review all legal documents, including the lease, construction contracts and the like.
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 advises franchisees to consult with advisors of their own choosing and confirms that franchisees have been given ample time to do so before signing the agreement. This indicates that Southern Steer encourages prospective franchisees to seek legal counsel during the negotiation process.
Southern Steer also requires franchisees to acknowledge that they have engaged their own legal advisors who are licensed in the Protected Area and who specialize in franchise law to ensure that they understand their obligations under the agreement and all applicable laws. Furthermore, franchisees must confirm they've engaged legal advisors to review all legal documents, including leases and construction contracts.
These stipulations suggest that Southern Steer not only permits but expects franchisees to seek independent legal counsel to fully understand the terms and conditions of the franchise agreement and related legal documents before committing to the franchise. This is a common practice in franchising, as it protects both the franchisor and franchisee by ensuring that the franchisee enters the agreement with informed consent.