What is the timeframe for closing the sale of the Southern Steer Business to the Franchisor after the Notice Date?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless the Franchisor terminates its Notice of Intent to Purchase as provided in Section 19.2 the Franchisee and the Franchisor will act in good faith to agree on the terms and conditions of the definitive agreement or agreements for the purchase of the Southern Steer Business or Major Assets (other than those objective terms and conditions contained in the Franchisee's Offer) and the closing date for the sale of the Southern Steer Business or Major Assets to the Franchisor will take place within 120 days after the Notice Date.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, if the franchisor provides a Notice of Intent to Purchase, the closing date for the sale of the Southern Steer business to the franchisor will occur within 120 days after the Notice Date. The Notice Date is defined as the date the Notice of Intent to Purchase is received by the franchisee.
Prior to this closing date, Southern Steer has a 90-day period after the Notice Date to conduct a due diligence review. During this time, the franchisee must promptly provide all requested financial records and information to facilitate the review.
It's important to note that Southern Steer retains the right to terminate the Notice of Intent to Purchase at any point during the 90-day due diligence period, for any reason, by providing written notice to the franchisee. If Southern Steer does not terminate the notice, both parties are expected to negotiate in good faith to finalize the terms of the purchase agreement.