Does Southern Steer's no-objection letter constitute a warranty or representation of financial or operational success?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that no approvals, consents, waivers, conditions, or the like by Franchisor are an endorsement by Franchisor or a warranty by Franchisor of the success of Franchisee's Southern Steer Business or the appropriateness of the particular items, persons, or matters so approved.
Franchisee further acknowledges, understands and accepts that Franchisee is not relying on Franchisor's or its Affiliates approvals, consents, waivers or 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, any approvals, consents, or waivers provided by Southern Steer do not constitute an endorsement or warranty of the franchisee's business success. The franchisee acknowledges that they are not relying on Southern Steer's approvals, consents, or waivers. This means that even if Southern Steer approves certain aspects of the franchisee's business, such as location or suppliers, it does not guarantee the financial or operational success of the franchise.
Southern Steer explicitly states that it makes no representations or warranties, whether express, implied, or collateral, regarding the potential success of the franchisee's Southern Steer Business. Furthermore, no one is authorized to make such representations or warranties on behalf of Southern Steer. The FDD emphasizes that actual results will vary among franchisees, and Southern Steer cannot estimate the results of any particular Southern Steer Business.
Southern Steer also disclaims any representations or warranties regarding the sales, earnings, income, profits, gross revenues, economics, business, or financial success of the franchisee's Southern Steer Business, except as specifically contained in the Franchise Disclosure Document itself. This reinforces the idea that prospective franchisees should not rely on any external promises or guarantees of financial performance.
In essence, Southern Steer is making it clear that the success of the franchise depends on the franchisee's own abilities, initiative, and hard work, as well as other factors, and that Southern Steer's approvals or consents should not be interpreted as a guarantee of profitability or operational effectiveness. Franchisees are advised to conduct their own independent investigation and consult with advisors to assess the risks and potential of the Southern Steer Business.