What is the scope of Southern Steer's review of the lease?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
hat 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.
- 5.3. Purchase or Lease of Site. The Franchisee will provide the Franchisor with a copy of the proposed Lease for the site of the Franchised Location selected by the Franchisee at least 30 days before the date the Lease is to be signed. The Franchisor may, but is not required, to assist the Franchisee in negotiating the terms of the Lease. The Franchisor's review of the Lease will be only to determine whether the terms of the Lease comply with the terms and conditions of this Agreement, and not to provide any business, economic, legal or real estate advice or analysis. The Franchisee will be solely responsible for all terms of the Lease, including the enforceability, economics and legality of all provisions in the Lease. The enforceability of the Lease must be conditioned on Franchisor approving the Franchisee as a Southern Steer Franchisee and the enforceability of this Agreement. The Franchisee will not sign the Lease until (a) this Agreement has been signed by both the Franchisee and the Franchisor; and (b) the Lease contains the terms required under this Section and the terms set forth in the Form of Lease Addendum attached to this Agreement as Attachment F. The Franchisee will use its best efforts to negotiate and secure from the lessor of the Franchised Location the terms and conditions set forth herein and in the Form of Lease Addendum attached hereto.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Southern Steer's review of a franchisee's proposed lease is limited. The franchisee must provide Southern Steer with a copy of the proposed lease for their selected site at least 30 days before signing. However, Southern Steer is not required to assist in negotiating the lease terms.
The scope of Southern Steer's lease review is specifically to determine if the lease terms comply with the franchise agreement's terms and conditions. Southern Steer will not provide any business, economic, legal, or real estate advice or analysis during this review. The franchisee bears the sole responsibility for all lease terms, including their enforceability, economics, and legality.
The enforceability of the lease must be conditional upon Southern Steer approving the franchisee and the franchise agreement's enforceability. The franchisee cannot sign the lease until both the franchise agreement is signed and the lease contains the terms required by the franchise agreement and its lease addendum. The franchisee must also secure terms in the lease that allow Southern Steer to enter the premises for inspections during business hours and execute a Collateral Assignment of Lease, assigning the franchisee's rights to Southern Steer in case of termination, expiration, or default.