What state's laws govern the Southern Steer Franchise Agreement, and under what circumstances might this be different?
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 The provisions of this Agreement which conflict with or are inconsistent with applicable governing law will be superseded and/or modified by such applicable law only to the extent such provisions are inconsistent. All other provisions of this Agreement will be enforceable as originally made and entered into upon the execution of this Agreement by the Franchisee and the Franchisor.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 Southern Steer and the franchisee are generally governed by the laws of Florida. However, this is not absolute. If applicable state law specifically provides otherwise, that law will take precedence.
Specifically, the FDD states that the agreement is not intended to confer the benefits of Florida franchise law or any other Florida law that provides specific protection to franchisees who reside or operate a Southern Steer business outside of Florida. This means that if a franchisee is not a resident of Florida or does not operate their Southern Steer business in Florida, they may not be able to rely on Florida law for specific protections typically afforded to franchisees.
Additionally, the FDD notes that various states have statutes and regulations that may supersede the provisions of the Franchise Agreement, particularly in areas related to termination and renewal of the Southern Steer business. Court decisions in various states may also override the agreement's provisions in these areas. Therefore, franchisees need to be aware of the laws in their specific state, as these may modify or supersede certain aspects of the Franchise Agreement.
In practical terms, a prospective Southern Steer franchisee should consult with legal counsel in their state to understand how local laws may affect their rights and obligations under the Franchise Agreement. This is especially important regarding termination and renewal, as state laws can provide different or additional protections compared to what is outlined in the agreement itself.