What specific right related to inspections must the lease grant to Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. Lessor acknowledges that Lessee intends to operate a Southern Steer Business franchise from the leased Premises pursuant to a Franchise Agreement ("Franchise Agreement") with Southern Steer Franchising International, LLC ("Franchisor") under the name "Southern Steer Butcher" or other name designated by Franchisor (herein referred to as "Franchised Southern Steer Business").
- C. The parties now desire to amend the Lease in accordance with the terms and conditions contained herein.
NOW, THEREFORE, it is hereby mutually covenanted and agreed between Lessor and Lessee as follows:
Remodeling and Decor.
Lessor agrees that Lessee will have the right to remodel, equip, paint and decorate the interior of the Premises and to display the proprietary marks and signs on the interior and exterior of the Premises as Lessee is reasonably required to do pursuant to the Franchise Agreement and any successor Franchise Agreement under which Lessee may operate a Franchised Southern Steer Business on the Premises.
Assignment or Subletting.
Lessee will agree to attorn to any assignee of Lessor provided such assignee will agree not to disturb Lessee's possession of Premises.
Lessee will have the right to assign or sublet all of its right, title and interest in the Lease, at any time during the term of the Lease, including any extensions or renewals thereof, without charge and without first obtaining Lessor's consent in accordance with the Collateral Assignment of Lease attached hereto as Attachment G-1: (a) to Franchisor or Franchisor's parent, subsidiary, or affiliate, (b) to a duly authorized franchisee of Franchisor, (c) in connection with a merger, acquisition, reorganization or consolidation, or (d) in connection with the sale of Lessee's corporate stock or assets.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
Based on the 2025 Southern Steer Franchise Disclosure Document, the lease agreement between the franchisee (Lessee) and the landlord (Lessor) should acknowledge that the franchisee intends to operate a Southern Steer Business franchise. The lease should grant the franchisee the right to remodel, equip, paint, and decorate the interior of the premises, as well as display proprietary marks and signs both inside and outside, as reasonably required by the Franchise Agreement. This ensures the franchisee can properly establish and maintain the Southern Steer brand identity at their location.
Furthermore, the lease must allow the franchisee to assign or sublet the lease without the landlord's consent or incurring charges under specific conditions. These conditions include assigning the lease to Southern Steer itself, its parent company, subsidiaries, or affiliates, or to another authorized Southern Steer franchisee. Assignment or subletting is also permitted in connection with a merger, acquisition, reorganization, consolidation, or the sale of the franchisee's corporate stock or assets. This provision provides flexibility for the franchisee in case of business changes or transfer of ownership.
In the event of a default by the franchisee under the lease or the franchise agreement, the collateral assignment of lease grants Southern Steer the right to take possession of the premises. This protects Southern Steer's interests and ensures continuity of the brand. The franchisee must also agree not to alter, terminate, amend, or modify the lease without Southern Steer's prior written consent. Additionally, the franchisee is obligated to exercise all options to extend or renew the lease at least 30 days before the option's deadline, unless Southern Steer instructs otherwise in writing. If the franchisee fails to do so, Southern Steer is irrevocably appointed as the franchisee's attorney-in-fact to exercise the extension or renewal options.