To whom must the outstanding fees be paid after termination, expiration, transfer, or cancellation of the Southern Steer Franchise Agreement?

According to the 2025 Southern Steer Franchise Disclosure Document, if the franchise agreement is terminated, expires, is transferred, or canceled for any reason, the franchisee must pay all outstanding fees to specific entities. These entities include Southern Steer itself (the Franchisor), its Affiliates, and any Approved and Designated Suppliers. This payment must be made within five business days after the termination, expiration, transfer, or cancellation of the agreement.

This requirement means that a franchisee exiting the Southern Steer system must settle all financial obligations with the franchisor and related parties promptly. This includes not only royalties and other standard franchise fees but also any outstanding payments owed to suppliers that Southern Steer has approved or designated. The short timeframe of five business days puts pressure on the franchisee to quickly reconcile accounts and make the necessary payments.

It is important for prospective franchisees to understand the scope of "outstanding Fees" and to whom these fees might be owed. This encompasses not just obvious debts to Southern Steer, but also potential obligations to a network of affiliated and approved vendors. Franchisees should maintain meticulous records of all payments and obligations to ensure compliance upon exiting the system, whether voluntarily or involuntarily. Failure to pay outstanding fees within the specified timeframe could result in further legal or financial repercussions.