What are the requirements for a Southern Steer franchisee to renew or extend the franchise term?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
L, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the agreements attached to this Disclosure Document.
| Provision | Agreement | Summary | |
|---|---|---|---|
| a. | Length of the franchise term | 2.1 | 10 years beginning as of the Effective Date (which may be extended under certain circumstances to coincide with the term of the lease for Your Southern Steer Business, as described in Section 2.1 of the Franchise Agreement). |
| b. | Renewal or extension of the term | 2.2 | One additional 10-year term. |
| c. | Requirements for franchisee to renew or extend | 2.2 Section in Franchise | You must: give written notice at least 180, but not more than 365 days before expiration; have complied with all material terms and conditions of Your current Franchise Agreement; have paid all monetary obligations owed to Us during the term of the Franchise Agreement; agree in writing to remodel Your Southern Steer Business (and provide evidence of Your financial capability to make such expenditures); have the right to continue to occupy the premises for the Southern Steer Business for at least five additional years;; pay the Successor Franchise Fee; execute a general release of claims against Us, Our parent, subsidiaries, affiliates, and related people; and You and Your Designated Manager must complete the required training. You will sign a new Successor Franchise Agreement which may have materially different terms and conditions than Your original |
| Provision | Agreement | Summary Franchise Agreement. You must also have all licenses, insurance, registrations and approvals required by Us and applicable governing authorities to operate the Southern Steer Business in the Protected Area. | |
| d. |
Source: Item 17 — ITEM. 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–50)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the franchise agreement has an initial term of 10 years, which can be extended for one additional 10-year term. To renew the franchise agreement, a Southern Steer franchisee must meet several requirements.
First, the franchisee must provide written notice of their intent to renew at least 180 days, but not more than 365 days, before the current term expires. They must have complied with all material terms and conditions of the existing Franchise Agreement and have paid all outstanding monetary obligations to Southern Steer during the current term.
Additionally, the franchisee must agree in writing to remodel their Southern Steer Business and provide evidence of their financial capability to cover these remodeling expenses. They must also demonstrate that they have the right to continue occupying the business premises for at least five more years. The franchisee will need to pay the Successor Franchise Fee, execute a general release of claims against Southern Steer and its related entities, and ensure that both the franchisee and their Designated Manager complete any required training. Finally, the franchisee must have all necessary licenses, insurance, registrations, and approvals to operate the Southern Steer Business in their protected area and must sign a new Successor Franchise Agreement, which may contain materially different terms and conditions than the original agreement.