What is the 'Notice Date' in the context of Southern Steer's right to purchase the franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchisor provides the Franchisee with a Notice of Intent to Purchase within 30 days after receipt of the Franchisee's Offer, then the Franchisor will have 90 days after the date the Notice of Intent to Purchase is received by the Franchisee ("Notice Date") to conduct a "due diligence" review.
The Franchisee will promptly provide the Franchisor with all Financial Records and other information requested by the Franchisor or its representatives to conduct its due diligence review.
The Franchisor will have the absolute and unconditional right to terminate the Notice of Intent to Purchase and any obligation to purchase the Southern Steer Business or Major Assets from the Franchisee for any reason and at any time during the 90-day due diligence review period by giving the Franchisee written notice.
- 19.3.
Good Faith Negotiations.
Unless the Franchisor terminates its Notice of Intent to Purchase as provided in Section 19.2 the Franchisee and the Franchisor will act in good faith to agree on the terms and conditions of the definitive agreement or agreements for the purchase of the Southern Steer Business or Major Assets (other than those objective terms and conditions contained in the Franchisee's Offer) and the closing date for the sale of the Southern Steer Business or Major Assets to the Franchisor will take place within 120 days after the Notice Date.
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 'Notice Date' is a key point in the process if a franchisee offers to sell their Southern Steer business. If Southern Steer decides it wants to buy the franchise, it has to send the franchisee a 'Notice of Intent to Purchase' within 30 days of receiving the franchisee's offer. The day the franchisee receives this notice is known as the 'Notice Date.'
Following the Notice Date, Southern Steer has 90 days to conduct a 'due diligence' review. This allows Southern Steer to thoroughly examine the business's financial records and other relevant information. During this 90-day period, Southern Steer has the right to back out of the purchase for any reason.
If Southern Steer doesn't terminate the purchase agreement during the due diligence period, both parties are expected to negotiate in good faith to finalize the terms of the sale. The closing date for the sale of the Southern Steer business must occur within 120 days after the Notice Date. This timeline is important for prospective franchisees to understand, as it dictates the period during which the sale of their business to Southern Steer would be finalized.