Which state's law governs the Franchise and Multi-Unit Development Agreements for Southern Steer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 28.1. Governing Law; Severability. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. §1051, et seq.), this Agreement and the relationship between the Franchisor and the Franchisee will be governed by the laws of the State of Florida, unless applicable state law specifically provides otherwise, and further provided that the parties expressly agree that this Agreement is not intended to confer on any franchisee that is not a resident of the State of Florida, or operating a Southern Steer Business in the State of Florida, the benefit of the Florida franchise law or any other Florida law providing specific protection to franchisees residing or operating in the State of Florida. The provisions of this Agreement which conflict with or are inconsistent with applicable governing law will be superseded and/or modified by such applicable law only to the extent such provisions are inconsistent. All other provisions of this Agreement will be enforceable as originally made and entered into upon the execution of this Agreement by the Franchisee and the Franchisor.
- 28.2. Applicable State Laws. If applicable, various states have statutes and regulations which may supersede the provisions of this Agreement relating to the Franchisee's relationship with the Franchisor in the areas of termination and renewal of the Southern Steer Business. Various states may have court decisions that may supersede the provisions of this Agreement in the Franchisee's relationship with the Franchisor in the areas of termination and renewal of the Southern Steer Business.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the Franchise Agreement and the relationship between the franchisor and franchisee are generally governed by the laws of Florida. However, this is subject to certain exceptions. If any part of the agreement conflicts with applicable state law, then that law will take precedence over the agreement's provisions, but only to the extent of the inconsistency. All other parts of the agreement will remain in effect.
Notably, the FDD specifies that the agreement is not intended to give franchisees who are not residents of Florida, or who do not operate a Southern Steer Business in Florida, the benefit of Florida franchise law or any other Florida law that provides specific protections to franchisees residing or operating in Florida. This means that franchisees outside of Florida may not be able to rely on Florida law for certain protections typically afforded to franchisees.
Prospective franchisees should be aware that various states have statutes and regulations that could supersede the provisions of the Franchise Agreement, particularly concerning termination and renewal of the Southern Steer Business. Similarly, state court decisions could also impact the franchisee's relationship with Southern Steer in these areas. Therefore, it is important for franchisees to understand the specific laws of their state and how they may affect the terms of the Franchise Agreement.