What is Southern Steer's process for a franchisee to request approval of a new supplier?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You want to purchase certain Goods, Supplies and Services that are subject to Our approved supplier requirements from a supplier who has not been previously approved by Us, then You must, request approval from Us in writing. We must approve such supplier prior to You making any purchase from such supplier. You must send Us representative samples or specifications of that supplier's Goods, Supplies and Services and certain other information about the supplier's business. We will also have the right to inspect the supplier's facilities and otherwise evaluate the proposed supplier and its Goods, Supplies and Services. You must pay the cost of all inspections and evaluations, including the actual cost of any testing. The criteria for supplier approval are available to franchisees upon request. Among other things, the suppliers must have adequate quality controls, the capacity to supply Your needs promptly and reliably and must comply with Our guidelines. We reserve the right to re-inspect the facilities and Goods, Supplies and Services of any approved supplier and to revoke Our approval if the supplier fails to continue to meet any of Our then-current standards. Our supplier approval procedure does not obligate Us to approve any particular supplier. However, We will notify You within 30 days after We complete the inspection and evaluation process of Our approval or disapproval of any proposed supplier. We may modify Our then-current standards for suppliers at any time. We will provide You with these new supplier standards upon Your written request.
Source: Item 8 — ITEM. 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–24)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if a franchisee wants to purchase goods, supplies, and services that are subject to Southern Steer's approved supplier requirements from a supplier not previously approved, the franchisee must request approval from Southern Steer in writing before making any purchases from that supplier. The franchisee must provide representative samples or specifications of the supplier's goods, supplies, and services, along with other information about the supplier's business. Southern Steer has the right to inspect the supplier's facilities and evaluate the proposed supplier and its offerings. The franchisee is responsible for covering the costs of all inspections and evaluations, including any testing fees.
The criteria for supplier approval are available to franchisees upon request. These criteria include the supplier's quality controls, capacity to meet the franchisee's needs promptly and reliably, and compliance with Southern Steer's guidelines. Southern Steer reserves the right to re-inspect approved suppliers and revoke approval if they fail to meet the current standards. Southern Steer will notify the franchisee of its approval or disapproval within 30 days after completing the inspection and evaluation process.
It is important to note that Southern Steer's supplier approval procedure does not obligate them to approve any particular supplier. Southern Steer may modify its standards for suppliers at any time and will provide franchisees with these new standards upon written request. This process ensures that all suppliers meet Southern Steer's standards for quality and consistency, but it also places the financial burden of inspections and evaluations on the franchisee seeking the approval.