What are the specific obligations of a Southern Steer franchisee (Item 9) regarding the maintenance of their business premises, as outlined in the Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Presentation Of Uniform Image.
The presentation of a uniform image to the public is an essential element of the System.
Franchisee will maintain the image of the Southern Steer Business at all times in accordance with Franchisor's standards and specifications, including: (i) ensuring that the Franchised Location is maintained in a clean and orderly manner; (ii) ensuring that all FF&E remain in good, clean condition and inventory is properly displayed; and (iii) only offering such types of products, food items and services, including Food, Beverages and Products, that Franchisor authorizes from time to time for use by Franchise's Southern Steer Business as set forth in the Brand Manual and this Agreement.
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.
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.
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, maintaining a consistent and high-quality image is crucial for all franchisees. As such, franchisees must keep their location clean, orderly, and in good repair. This includes ensuring that all fixtures, furniture, and equipment (FF&E) are in good, clean condition and that inventory is properly displayed. Franchisees are also obligated to offer only those products, food items, and services that Southern Steer authorizes.
Furthermore, franchisees are expected to remodel their Southern Steer Business every five years, although there is no limit on the expenses for remodeling, replacement, or modernization. The Franchise Agreement stipulates that if the Franchised Location is damaged or destroyed by fire or any other catastrophe, the franchisee is responsible for using insurance proceeds to repair or reconstruct the location. If the insurance proceeds are insufficient, the franchisee must cover the deficit to restore the business to its original condition and recommence operations as soon as commercially practicable.
These obligations ensure that each Southern Steer location meets the franchisor's standards, thereby protecting the brand's reputation and customer experience. Prospective franchisees should carefully consider these maintenance and remodeling requirements, as they can represent significant ongoing costs and responsibilities. Understanding these obligations is essential for budgeting and planning the long-term operation of a Southern Steer franchise.