Is Southern Steer's site approval for a franchisee's location a warranty of future success?

According to Southern Steer's 2025 Franchise Disclosure Document, while the franchisor reviews and approves the franchisee's proposed site, this approval does not constitute a warranty of future success. The franchisee is responsible for conducting their own market research and selecting a location that meets Southern Steer's criteria, subject to the franchisor's final approval. The site criteria include factors such as demographic characteristics, traffic patterns, parking, neighborhood characteristics, competition, proximity to other businesses, foot traffic, daytime business population, size, and appearance.

Southern Steer's site approval process involves the franchisee providing detailed Site Information, which includes demographics, traffic patterns, neighborhood character, competition, and the physical characteristics of the proposed site. While Southern Steer will review this information, they have no obligation, duty, or liability resulting from the site selected by the franchisee or the lease of the location. The franchisor estimates that it generally takes 30 to 45 days to review the site information.

This means that while Southern Steer provides site selection criteria and reviews the proposed location, the ultimate responsibility for the success of the business at that location rests with the franchisee. The franchisee bears the risk of market conditions and other factors that could impact the business's performance. Prospective franchisees should therefore conduct thorough due diligence and not rely solely on Southern Steer's approval as a guarantee of profitability.