Does Southern Steer's supplier approval procedure obligate them to approve any particular supplier?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If You want to purchase certain Goods, Supplies and Services that are subject to Our approved supplier requirements from a supplier who has not been previously approved by Us, then You must, request approval from Us in writing. We must approve such supplier prior to You making any purchase from such supplier. You must send Us representative samples or specifications of that supplier's Goods, Supplies and Services and certain other information about the supplier's business. We will also have the right to inspect the supplier's facilities and otherwise evaluate the proposed supplier and its Goods, Supplies and Services. You must pay the cost of all inspections and evaluations, including the actual cost of any testing. The criteria for supplier approval are available to franchisees upon request. Among other things, the suppliers must have adequate quality controls, the capacity to supply Your needs promptly and reliably and must comply with Our guidelines. We reserve the right to re-inspect the facilities and Goods, Supplies and Services of any approved supplier and to revoke Our approval if the supplier fails to continue to meet any of Our then-current standards. Our supplier approval procedure does not obligate Us to approve any particular supplier. However, We will notify You within 30 days after We complete the inspection and evaluation process of Our approval or disapproval of any proposed supplier. We may modify Our then-current standards for suppliers at any time. We will provide You with these new supplier standards upon Your written request.
Source: Item 8 — ITEM. 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–24)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, their supplier approval procedure does not obligate them to approve any specific supplier. However, if a franchisee wants to purchase goods, supplies, and services from a supplier not already approved, they must request written approval from Southern Steer. The franchisee is responsible for providing representative samples, specifications, and other information about the supplier's business. Southern Steer retains the right to inspect the supplier's facilities and evaluate their offerings, with the franchisee bearing the costs of all inspections and evaluations, including testing.
Southern Steer will notify the franchisee of their decision within 30 days after completing the inspection and evaluation process. The criteria for supplier approval, available upon request, include adequate quality controls, the capacity to meet the franchisee's needs promptly and reliably, and compliance with Southern Steer's guidelines. Southern Steer reserves the right to re-inspect approved suppliers and revoke approval if they fail to meet current standards, which Southern Steer may modify at any time.
This process ensures that Southern Steer maintains control over the quality and consistency of products used within its franchise system. While franchisees have the option to propose new suppliers, the ultimate decision rests with Southern Steer, and there is no guarantee of approval. This protects Southern Steer's brand standards but also means franchisees may face limitations in sourcing products and services, potentially impacting their costs and operational flexibility.