factual

What obligation does the Southern Steer franchisee have to negotiate in good faith with the franchisor?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) Best Efforts.

Franchisee agrees at all times during the Initial Term and any Interim Period to faithfully, honestly and diligently perform Franchisee's obligations under this Agreement, including in the promotion and development of Franchisee's Southern Steer Business in Franchisee's Protected Territory.

  • (c) Conduct.

Franchisee will at all times cooperate with Franchisor, existing and prospective Southern Steer franchisees, and Affiliates in accomplishing the purpose of this Agreement.

Franchisee agrees, at all times, to give prompt, courteous, friendly, and efficient service to all current and prospective customers.

Franchisee agrees to adhere to the highest standards of honesty, integrity, fair dealing and ethical conduct when dealing with current and prospective customers, suppliers, Franchisor, Affiliates and the public.

  • (d) Presentation Of Uniform Image.

The presentation of a uniform image to the public is an essential element of the System.

Franchisee will maintain the image of the Southern Steer Business at all times in accordance with Franchisor's standards and specifications, including: (i) ensuring that the Franchised Location is maintained in a clean and orderly manner; (ii) ensuring that all FF&E remain in good, clean condition and inventory is properly displayed; and (iii) only offering such types of products, food items and services, including Food, Beverages and Products, that Franchisor authorizes from time to time for use by Franchise's Southern Steer Business as set forth in the Brand Manual and this Agreement.

  • (e) Cooperation.

Franchisee agrees to cooperate with and communicate directly with Franchisor.

Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)

What This Means (2025 FDD)

According to the 2025 Southern Steer Franchise Disclosure Document, franchisees have a duty to act honestly and cooperate with the franchisor. Specifically, Southern Steer franchisees must perform their obligations under the franchise agreement faithfully, honestly, and diligently. This includes promoting and developing their Southern Steer Business within their protected territory. Franchisees are also expected to cooperate with the franchisor, existing and prospective franchisees, and affiliates to achieve the agreement's purpose.

Southern Steer franchisees must provide prompt, courteous, friendly, and efficient service to all current and prospective customers. They are required to adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct when interacting with customers, suppliers, the franchisor, affiliates, and the public. This encompasses all aspects of their business operations and interactions.

Maintaining a uniform image is crucial, so franchisees must keep their Southern Steer Business location clean and orderly, ensure all fixtures, furniture, and equipment remain in good condition, and properly display inventory. They are only allowed to offer products, food items, and services that the franchisor authorizes. Furthermore, franchisees must cooperate and communicate directly with Southern Steer to ensure smooth operations and adherence to standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.