Can Southern Steer take samples from a franchisee's inventory for testing, and who pays for the testing?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
You must permit Us and Our agents, at any reasonable time, to remove a reasonable number of samples of food or non-food items from Your inventory, free of charge for testing (at Your cost) by Us or by an independent laboratory, to determine whether the samples meet Our then-current standards and specifications.
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, Southern Steer or its agents can take samples from a franchisee's inventory for testing. This allows Southern Steer to ensure that franchisees are adhering to the brand's standards and specifications for food and non-food items.
The franchisee is responsible for covering the costs associated with these tests. These tests can be conducted either by Southern Steer itself or by an independent laboratory. This means that franchisees should budget for potential testing expenses as part of their ongoing operational costs.
This is a fairly standard practice in franchising, particularly in the food service industry, where maintaining consistent quality and brand standards is crucial. Franchisees should ensure they understand the frequency and potential costs of these tests to factor them into their financial planning. It would be prudent for a prospective franchisee to inquire about the typical frequency and estimated costs of such testing during their due diligence process.