What state's laws govern the Southern Steer agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Multi-Unit Developer will be governed by the laws of the State of Florida, unless applicable state law specifically provides to the contrary; and further provided that the parties expressly agrees that this Agreement is not intended to confer on any Franchisee that is not operating a Southern Steer Business in, or a resident of, the State of Florida the benefit of the Florida franchise law or any other Florida law providing specific protection to franchisees residing in 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 The provisions of this Agreement which conflict with or are inconsistent with applicable governing law will be superseded and/or modified by such applicable law only to the extent such provisions are inconsistent. All other provisions of this Agreement will be enforceable as originally made and entered into upon the execution of this Agreement by the Multi-Unit Developer and the Franchisor.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the laws of the State of Florida govern the agreement between the franchisor and the multi-unit developer. However, this is only to the extent that it does not conflict with the United States Trademark Act of 1946. Additionally, if any state law specifically contradicts the agreement, that state law will take precedence.
This means that while Florida law generally applies, franchisees operating Southern Steer businesses outside of Florida are not entitled to the specific protections offered to franchisees under Florida law. The agreement is not intended to confer those benefits on franchisees who do not operate or reside in Florida. Therefore, franchisees should be aware of the franchise laws in their own state, as those laws may supersede certain provisions of the Southern Steer agreement.
Prospective franchisees should consult with legal counsel to understand how both Florida law and the laws of their own state might affect their rights and obligations under the franchise agreement. This is particularly important if the franchisee is not located in Florida, as the protections afforded to Florida franchisees may not extend to them.