What proof of ownership is the Franchisee required to provide to Southern Steer, and when must it be provided?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisor written notice of Franchisee's election to do so at least 180 days and no more than one year prior to the expiration of the Initial Term (or immediately preceding Successor Term, as the case may be). As a condition for any Successor Term, the Franchisee must cause all of the following to occur:
- i. The Franchisee must provide written evidence to the Franchisor that the Franchisee either owns or has the right to lease the Franchised Location for at least five additional years after the end of the Initial Term or preceding Successor Term, as the case may be;
- ii. The Franchisee must sign Franchisor's then-current form of franchise agreement ("Successor Franchise Agreement"), which may include terms and conditions materially different from those in this Agreement, such as different performance standards, fee structures and/or increased fees, and an option to operate the Southern Steer Business for any additional terms;
- iii.
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 franchisee must provide written evidence to Southern Steer that they either own or have the right to lease the franchised location. This right to lease or own must extend for at least five additional years after the end of the initial term or preceding successor term. The FDD states that at the time of execution of the agreement, the franchisee will provide satisfactory proof of the franchisee's ownership. At any later time at Southern Steer's request, the franchisee or franchisee's operating principal will promptly provide Southern Steer with satisfactory proof of franchisee's ownership.
This requirement ensures that Southern Steer franchisees have secure tenure at their business location, which is crucial for building customer loyalty and brand recognition in a specific area. By requiring franchisees to demonstrate control over the location for an extended period, Southern Steer aims to minimize disruptions that could arise from lease expirations or ownership disputes.
For a prospective franchisee, this means carefully evaluating the terms of their lease or ownership agreement before signing the franchise agreement. They should ensure that the lease term is sufficiently long or that they have the option to renew it for at least five years beyond the initial franchise term. Additionally, they should be prepared to provide documentation, such as a lease agreement or property deed, to Southern Steer as proof of their ownership or leasehold rights, both at the beginning of the agreement and potentially at later times if requested by Southern Steer.