What is required before a Southern Steer Franchisee can purchase or lease a proposed site?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
for the Franchisee's Southern Steer Business. The Franchisor recommends that the Franchisee retain an experienced attorney to provide advice and counsel on the terms, conditions and economics of the legal and other documents required to lease or purchase the site for the Franchised Location.
- 5.2. Site Information. The Franchisee will provide to the Franchisor the information specified by the Franchisor in writing for the proposed site ("Site Information"). The Franchisor will have the right to require that the Franchisee obtain, at the Franchisee's expense, an economic feasibility study for the proposed site for the Franchised Location. Any such feasibility study required by the Franchisor will be completed by an expert mutually agreed upon by the Franchisor and the Franchisee in writing. The Franchisor will review the Site Information and the Franchisee will not purchase or lease a proposed site until the Franchisee has provided the Site Information to the Franchisor, the Franchisor has reviewed the Site Information, and the Franchisor has provided the Franchisee with a no-objection letter for the proposed site. The review of any Site Information, any visits by the Franchisor to a proposed site, the review of the site, and/or the issuance of a no-objection letter by the Franchisor will not constitute a warranty or representation by the Franchisor or any other party that the site for the Franchised Location chosen by the Franchisee will be a financial or operational success. The issuance of a no-objection letter by the Franchisor will only mean that it has received the Site Information provided by the Franchisee and reviewed the Site Information.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a franchisee is responsible for selecting their business location. Before a Southern Steer franchisee can purchase or lease a proposed site, they must first provide the franchisor with the information specified by the franchisor in writing for the proposed site, also known as "Site Information".
Southern Steer requires that the franchisee provide the Site Information to the franchisor for review. The franchisee cannot proceed with purchasing or leasing the site until the franchisor has reviewed this information and provided a no-objection letter for the proposed site. The franchisor has the right to require the franchisee to obtain an economic feasibility study for the proposed site at the franchisee's expense, completed by an expert mutually agreed upon by both parties.
It is important to note that Southern Steer's review of the Site Information, any site visits, or the issuance of a no-objection letter does not constitute a warranty or representation that the chosen site will be financially or operationally successful. The no-objection letter only signifies that Southern Steer has received and reviewed the provided Site Information. Additionally, the franchisee must provide Southern Steer with a copy of the proposed lease at least 30 days before signing.