What is Southern Steer's sole and exclusive liability for any conditions or warranties extended to the franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
FRANCHISOR'S SOLE AND EXCLUSIVE LIABILITY FOR ANY CONDITIONS OR WARRANTIES EXTENDED TO FRANCHISEE WILL BE TO REPAIR OR REPLACE, AT FRANCHISOR'S OPTION, ANY OF THE
FOOD, BEVERAGES, PRODUCTS, SERVICES AND GOODS SOLD, LICENSED, OR LEASED BY FRANCHISOR TO FRANCHISEE WHICH ARE NOT IN COMPLIANCE WITH SUCH WARRANTY OR CONDITION, IF ANY.
FOOD, BEVERAGES, PRODUCTS, SERVICES AND GOODS SOLD, LICENSED, OR LEASED BY FRANCHISOR TO FRANCHISEE WHICH ARE NOT IN COMPLIANCE WITH SUCH WARRANTY OR CONDITION, IF ANY.
UNDER NO CIRCUMSTANCES WILL THE FRANCHISOR INDEMNIFIED PARTIES LIABILITY EXCEED THE DOLLAR AMOUNT OF THE INITIAL FRANCHISE FEE OR THE AMOUNT PAID FOR ANY FOOD, BEVERAGES, PRODUCT, SERVICE OR GOOD THAT IS NOT IN COMPLIANCE WITH SUCH CONDITION OR WARRANTY, IF ANY.
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 sole and exclusive liability for any conditions or warranties extended to the franchisee is limited to repairing or replacing, at Southern Steer's option, any food, beverages, products, services, and goods sold, licensed, or leased by Southern Steer to the franchisee that do not comply with the warranty or condition, if any exists.
This means that if Southern Steer provides a warranty on certain products or services, and those products or services do not meet the warranty standards, Southern Steer's responsibility is limited to either fixing the issue or providing a replacement. The franchisee cannot seek additional compensation or damages beyond the repair or replacement of the non-compliant items.
Furthermore, the liability of Southern Steer and its affiliates will not exceed the dollar amount of the initial franchise fee or the amount paid for any food, beverages, product, service, or good that does not comply with such condition or warranty. This limitation of liability is a standard practice in franchising, designed to protect the franchisor from excessive claims while still providing some recourse for the franchisee in case of defective products or services.