Which sections of the Southern Steer Franchise Agreement outline the franchisee's responsibilities for pre-opening purchases and leases?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
In addition, the terms of the Lease must also give the Franchisor the right to enter the premises of the Franchised Location to conduct inspections during regular business hours.
Further, the Franchisee must execute a Collateral Assignment of Lease attached to this Agreement as Attachment F-1, whereby the Franchisee agrees to assign the Franchisee's rights in the Lease to the Franchisor in the event of a termination or expiration of the term of this Agreement or a default under the Lease.
The Franchisee will provide executed copies of the Lease or purchase closing documents for the Franchised Location within 10 days after their execution.
Franchisee will be required to execute a lease that complies with this Section within 90 days after the Effective Date.
- 5.4.
Site Release.
The Franchisor will have no duty or obligation to assist the Franchisee in the selection of a site for the Franchised Location, or to provide any assistance to the Franchisee in the purchase or lease of the Franchised Location.
The Franchisor has informed the Franchisee that it does not have any experience or expertise in selecting real estate sites in the geographic area where the Franchisee's Southern Steer Business will be located and therefore, the Franchisor will not have any obligation, duty or liability to the Franchisee as a result of the site selected by the Franchisee and/or the purchase or lease of the
Franchised Location.
The Franchisee hereby releases the Franchisor and its Affiliates and their respective Executive Management, agents and employees, in their corporate and individual capacities, from any and all Claims by the Franchisee arising from, in connection with, or as a result of the Franchisee's purchase or lease of the site selected by the Franchisee for the Franchised Location.
- 5.5.
Standard Plans and Specifications.
The Franchisor will provide the Franchisee with a set of the template plans and specifications for a standard Southern Steer Business.
The Franchisee acknowledges that unique aspects of each real estate site may require significant modifications to the standard plans.
Consequently, the Franchisee will, at its cost, retain a licensed architect and will be responsible for the preparation of working drawings and construction and architectural plans and specifications for the Franchisee's Southern Steer Business.
The Franchisee will be responsible for the accuracy of all drawings, plans and specifications for its Southern Steer Business, subject to the Franchisor's review and approval.
- 5.6.
Compliance with Specifications and Standards.
The Franchised Location and the Franchisee's Southern Steer Business will conform to all standards, specifications and other requirements ("Design Standards") established by the Franchisor for the design, decoration, layout, FF&E and other items of the Southern Steer Business.
Any changes or modifications to the Design Standards must be submitted to the Franchisor for its prior approval.
Source: Item 9 — ITEM. 9 FRANCHISEE'S OBLIGATIONS (FDD pages 24–25)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Item 22 discusses the franchisee's responsibilities regarding the purchase or lease of the site for their franchised location. Specifically, the franchisee is required to provide Southern Steer with a copy of the proposed lease at least 30 days before signing. While Southern Steer may offer assistance in negotiating lease terms, the franchisee is ultimately responsible for all lease terms, including their enforceability, economics, and legality. The enforceability of the lease must be contingent on Southern Steer approving the franchisee. The franchisee cannot sign the lease until the Franchise Agreement is signed and the lease contains the terms outlined in the Lease Addendum (Attachment F). The franchisee must also secure terms and conditions from the lessor as specified in the Lease Addendum. The lease must grant Southern Steer the right to inspect the premises during business hours. Additionally, the franchisee must execute a Collateral Assignment of Lease (Attachment F-1), assigning their lease rights to Southern Steer upon termination or expiration of the Franchise Agreement or default under the lease. Executed copies of the lease or purchase closing documents must be provided to Southern Steer within 10 days of execution, and the franchisee must execute a compliant lease within 90 days of the Effective Date.
Southern Steer has no obligation to assist the franchisee in site selection or the purchase or lease of the franchised location. The franchisee releases Southern Steer from any claims arising from the purchase or lease of the site. Southern Steer will provide template plans and specifications for a standard Southern Steer Business. The franchisee is responsible for retaining a licensed architect to prepare working drawings and construction plans, subject to Southern Steer's review and approval. The franchised location must conform to Southern Steer's Design Standards, and any modifications require prior approval.
In summary, while Southern Steer provides some standard plans and may offer lease negotiation assistance, the franchisee bears the primary responsibility for site selection, lease negotiation, architectural plans, and ensuring compliance with Southern Steer's standards and legal requirements. This arrangement places significant responsibility and risk on the franchisee regarding real estate decisions and pre-opening preparations.