Which sections of the Southern Steer Franchise Agreement detail the franchisee's maintenance obligations?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
thern Steer Businesses, to update the image of Southern Steer Businesses and to avoid the deterioration of the appearance and operation of the Franchisee's Southern Steer Business. The Franchisee will complete remodeling the Southern Steer Business within nine months after receiving written notice from the Franchisor specifying the required remodeling. Except for repairs and maintenance as provided for in Section 9.4(m) of this Agreement, the Franchisee will not be required to remodel the Southern Steer Business more than once every five years from the date of this Agreement; provided, however, the Franchisee acknowledges that there is no cap on the expenses the Franchisee will have to incur relating to such required remodeling, replacement or modernization. However, this does not restrict the Franchisor from requiring the Franchisee to purchase or lease new equipment or products for the operation of Franchisee Southern Steer Business. Compliance with these standards may be an ongoing obligation of the Franchisee and may be a condition of the Franchisor consenting to enter into a Successor Franchise Agreement, or Franchisor's consent to a Transfer of this Agreement.
- 5.12. Damage or Destruction. If the Franchised Location is either partially or completely destroyed by fire or any catastrophe during the Initial Term or any Interim Period of this Agreement and the term of the underlying Lease for the Franchised Location, then the Franchisee will (a) subject to the provisions of the Lease, use the building insurance proceeds to repair or reconstruct the Franchised Location as set forth herein and, if such proceeds are insufficient to fully restore the Franchised Location (or relocate from the Franchised Location), the Franchisee will be responsible for making up any such deficit, (b) within 30 days thereafter, initiate the process to commence the repairs and reconstruction necessary to restore the Southern Steer Business to its original condition prior to such casualty, and (c) recommence operations of Franchisee's Southern Steer Business as soon as commercially practicable. If the Southern Steer Business cannot be restored to its original condition, then the Franchisee will relocate the Southern Steer Business as provided for in Section 1.5 (except the Franchisee will not be required to pay a Relocation Fee).
Source: Item 9 — ITEM. 9 FRANCHISEE'S OBLIGATIONS (FDD pages 24–25)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Section 9.4(m) and Section 1.5 of the Franchise Agreement outline the franchisee's maintenance obligations. Additionally, the franchisee is responsible for remodeling the Southern Steer Business within nine months after receiving written notice from Southern Steer specifying the required remodeling. Except for repairs and maintenance as provided for in Section 9.4(m), the franchisee will not be required to remodel the Southern Steer Business more than once every five years from the date of the agreement. However, there is no cap on the expenses the franchisee will incur relating to such required remodeling, replacement, or modernization.
Furthermore, the franchisee is obligated to repair and maintain the Southern Steer Business in a clean and sanitary condition consistent with Southern Steer's then-current operating standards. This includes replacing all décor items and FF&E (furniture, fixtures, and equipment) as they become worn out, soiled, or in disrepair. All food preparation, mechanical, service, and other equipment must be kept in good working order and repair by the franchisee. All replacement FF&E and décor items used in the Southern Steer Business must comply with the standards and specifications in the Brand Manual.
If the Franchised Location is either partially or completely destroyed by fire or any catastrophe during the Initial Term or any Interim Period of this Agreement and the term of the underlying Lease for the Franchised Location, then the Franchisee will (a) subject to the provisions of the Lease, use the building insurance proceeds to repair or reconstruct the Franchised Location as set forth herein and, if such proceeds are insufficient to fully restore the Franchised Location (or relocate from the Franchised Location), the Franchisee will be responsible for making up any such deficit, (b) within 30 days thereafter, initiate the process to commence the repairs and reconstruction necessary to restore the Southern Steer Business to its original condition prior to such casualty, and (c) recommence operations of Franchisee's Southern Steer Business as soon as commercially practicable. If the Southern Steer Business cannot be restored to its original condition, then the Franchisee will relocate the Southern Steer Business as provided for in Section 1.5 (except the Franchisee will not be required to pay a Relocation Fee).