What are the specific obligations of a Southern Steer franchisee (Item 9) regarding the maintenance of quality and service standards, as influenced by the approved supplier restrictions (Item 8)?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor has developed and will continue to develop uniform standards of quality, cleanliness, service, and safety applicable to all Southern Steer Businesses, including the Franchisee's Southern Steer Business, to protect and maintain for the benefit of the Franchisor and all of its franchisees and developers the distinction, valuable goodwill and uniformity represented and symbolized by the Marks and the System.
The Franchisee agrees to maintain the uniformity and quality standards required by the Franchisor for all Foods, Beverages and Products, and the services associated with the Marks and the System, and agrees to the terms and conditions contained in this Section 9 to assure the public that all Southern Steer Businesses will be uniform in nature and will sell and dispense quality Foods, Beverages and Products.
The Franchisee will use the Marks and the System in strict compliance with the moral and ethical standards, quality standards, health standards, operating procedures, specifications, requirements and instructions required by the Franchisor.
Franchisee will purchase all products, services, supplies, equipment, materials and Foods, Beverages or Products required for the operation of Franchisee's Southern Steer Business from manufacturers, suppliers or distributors designated or previously approved by Franchisor.
Franchisee agrees to purchase from Franchisor or its Affiliates directly those items specified by Franchisor from time to time.
If Franchisee desires to use different foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products or desires to purchase foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers Franchisee must first obtain Franchisor's approval in writing.
Any suppliers proposed by Franchisee must conform to the Franchisor's standards and specifications and Franchisor must first determine that the supplier's business reputation, quality standards, delivery performance, credit rating, and other criteria meet Franchisee standards and specifications.
The Franchisor may deny or revoke the Franchisor's approval of any supplier at any time based upon the lack of any of the above items.
If the Franchisee desires to purchase any required foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products from other suppliers which are not Approved Suppliers, then the Franchisee must, at its expense, submit samples, specifications, and product information requested by the Franchisor, for review and testing to determine whether these foods, food items, products, supplies, equipment, materials, services or Food, Beverages and Products comply with the Franchisor's standards and specifications.
The Franchisor will also have the right to inspect the facilities of the proposed supplier, and the Franchisee will reimburse the Franchisor for the costs and expenses incurred to conduct the inspection.
The Franchisor will complete all testing and will notify the Franchisee of its determination within 30 days after the Franchisor completes its testing, inspection and evaluation process.
You must purchase the POS System (which includes computer hardware, iPad, and all necessary guest check printers, credit card "swipe/read" terminals, printers, and modems.), and gift cards from our designated suppliers. You will pay the monthly Technology Fee and POS System Fee .
You are required to purchase certain interior and exterior signage, digital menu boards, uniforms for employees, thermometer, recipe/safety software, and paper products (such as napkins, plates, straws, etc.) set out in the Brand Manual for use in Your Southern Steer Business from Our designated suppliers or from suppliers We approve. We also may require that You use our designated supplier for printed marketing materials, including brochures, business cards, menu boards, and the like. You will pay an annual Signage Fee for the digital menu boards and a quarterly Recipe/Safety Fee.
We estimate that purchases of equipment, food, beverages and products purchased in accordance with Our standards and specifications will constitute up to 80% of Your initial expenditures to open Your Southern Steer Business, and approximately 90% of Your total purchases during the operation of the Southern Steer business.
Franchisee's Southern Steer Business will be open during the hours specified in the Brand Manual.
The Franchisee will have a sufficient number of adequately trained and competent personnel on duty to guarantee efficient service to the customers of the Southern Steer Business and operation of the Southern Steer Business.
The Franchisee will require its employees to meet the appearance standards and to wear the prescribed attire or uniforms described in the Brand Manual.
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, franchisees have several obligations to maintain quality and service standards, heavily influenced by restrictions on approved suppliers. Southern Steer has developed and will continue to develop uniform standards of quality, cleanliness, service, and safety applicable to all Southern Steer Businesses. Franchisees must maintain the uniformity and quality standards required by Southern Steer for all foods, beverages, products, and services associated with the brand. Franchisees must also use the marks and the system in strict compliance with the moral and ethical standards, quality standards, health standards, operating procedures, specifications, requirements, and instructions required by Southern Steer. These standards are put in place to protect and maintain the goodwill and uniformity represented by the Southern Steer brand.
To ensure these standards are met, franchisees are required to purchase all products, services, supplies, equipment, materials, and food items from manufacturers, suppliers, or distributors designated or previously approved by Southern Steer. Southern Steer may also be the sole designated supplier of certain required or non-required items, which franchisees must purchase directly from them or their affiliates. If a franchisee wishes to use different suppliers or products, they must obtain Southern Steer's written approval, and the proposed suppliers must meet Southern Steer's standards and specifications. Southern Steer has the right to inspect the facilities of proposed suppliers, with the franchisee bearing the costs of such inspections. Southern Steer can deny or revoke approval of any supplier at any time if they fail to meet the required criteria.
These restrictions on suppliers ensure that Southern Steer franchisees maintain consistent quality and uniformity across all locations. By controlling the sources of products and services, Southern Steer aims to protect its brand reputation and customer experience. Franchisees must adhere to these requirements to remain in compliance with the franchise agreement. This includes using only approved signage, uniforms, and paper products from designated suppliers. Southern Steer estimates that purchases made in accordance with their standards and specifications will constitute a significant portion of a franchisee's initial and ongoing expenditures, up to 80% of initial costs and approximately 90% of total purchases during operation.
Southern Steer also requires franchisees to permit them or their agents to take samples of food or non-food items from their inventory for testing, at the franchisee's cost, to ensure compliance with current standards and specifications. This allows Southern Steer to monitor and enforce quality control measures across all franchise locations. Additionally, franchisees must operate their Southern Steer Business during the hours specified in the Brand Manual and have a sufficient number of trained personnel on duty to guarantee efficient service. Employees must also meet appearance standards and wear prescribed uniforms, further contributing to the uniformity and quality standards of the Southern Steer brand.