Does Southern Steer provide material benefits to franchisees, such as renewal or granting additional franchises, based on their purchase of particular Goods, Supplies and Services or use of particular suppliers?

According to Southern Steer's 2025 Franchise Disclosure Document, franchisees do not receive material benefits like renewal or additional franchises based on their purchasing choices. Southern Steer may negotiate purchasing arrangements with suppliers for the benefit of the franchise system, but franchisees won't get special perks for using specific vendors.

Southern Steer requires franchisees to buy certain items from approved suppliers to maintain quality and uniformity. These include the POS system, gift cards, signage, uniforms, and specific paper products. While franchisees must adhere to these requirements, their compliance does not translate into receiving preferential treatment such as franchise renewal or the opportunity to open additional locations.

Although Southern Steer doesn't offer direct benefits for using specific suppliers, they retain the right to receive income from these suppliers through rebates, discounts, or other credits. Southern Steer decides how to use these payments. This arrangement means that while franchisees don't directly benefit from supplier relationships in terms of franchise growth, Southern Steer can leverage these relationships to potentially improve the overall system.

Prospective franchisees should be aware that while adhering to Southern Steer's supplier requirements is mandatory, it does not guarantee any advantages beyond maintaining brand standards. Franchisees looking to expand or renew their agreements will need to meet other criteria unrelated to their purchasing habits.