How often is a Southern Steer franchisee required to remodel their business, excluding repairs and maintenance?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
thern Steer Businesses, to update the image of Southern Steer Businesses and to avoid the deterioration of the appearance and operation of the Franchisee's Southern Steer Business. The Franchisee will complete remodeling the Southern Steer Business within nine months after receiving written notice from the Franchisor specifying the required remodeling. Except for repairs and maintenance as provided for in Section 9.4(m) of this Agreement, the Franchisee will not be required to remodel the Southern Steer Business more than once every five years from the date of this Agreement; provided, however, the Franchisee acknowledges that there is no cap on the expenses the Franchisee will have to incur relating to such required remodeling, replacement or modernization. However, this does not restrict the Franchisor from requiring the Franchisee to purchase or lease new equipment or products for the operation of Franchisee Southern Steer Business. Compliance with these standards may be an ongoing obligation of the Franchisee and may be a condition of the Franchisor consenting to enter into a Successor Franchise Agreement, or Franchisor's consent to a Transfer of this Agreement.
- 5.12. Damage or Destruction.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees are generally not required to remodel their business more than once every five years from the date of the franchise agreement, excluding regular repairs and maintenance. However, Southern Steer can mandate remodels more frequently if the location is damaged or destroyed. Franchisees must complete any required remodeling within nine months of receiving written notice from the franchisor.
While the frequency of remodels is capped, the FDD states that there is no limit on the expenses a franchisee may incur for these required remodels, replacements, or modernizations. This means that although remodels are limited to occurring no more than once every five years, the cost of each remodel could vary significantly and potentially be substantial.
In addition to the general remodeling requirements, Southern Steer franchisees must also modify or replace their signs to comply with new specifications, potentially as often as once every five years from the effective date of the agreement. Furthermore, franchisees must agree to make all necessary capital expenditures to remodel the franchised location to comply with the then-current Southern Steer image, décor, and specifications within six months after the effective date of a Successor Franchise Agreement.