Does Southern Steer review and approve the proposed lease or purchase agreement for a franchisee's Southern Steer site?

According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer does review and approve a franchisee's proposed lease or purchase agreement for their site. Specifically, Southern Steer reviews the proposed lease to determine if it complies with the terms of the Franchise Agreement and substantially includes the terms in the Addendum to Lease, which is Attachment G to the Franchise Agreement. The franchisee must also sign a Collateral Assignment of Lease, which is Attachment F to the Franchise Agreement. However, Southern Steer's review does not constitute any business, economic, legal, or real estate advice or analysis.

It is important to note that the franchisee is responsible for their own market research and for finding a qualified agent to select a site, subject to Southern Steer's approval. Southern Steer provides site criteria that may include demographic characteristics, traffic patterns, parking, neighborhood characteristics, competition, proximity to other businesses, foot traffic, daytime business population, size, and appearance. The franchisee must provide Southern Steer with site information, including demographics, traffic patterns, neighborhood character, competition, and the size and appearance of the proposed site.

Southern Steer estimates that the typical time between signing the Franchise Agreement and opening the business is twelve to eighteen months, with site selection and lease negotiation being contributing factors. The Franchise Agreement can be terminated if the franchisee fails to provide the Site Information and lease a Site, approved by Southern Steer, within 90 days after the date of the Franchise Agreement. The franchisee is solely responsible for remodeling or constructing the site to meet Southern Steer's requirements.