What are the two possible responses Southern Steer can provide to a franchisee's offer to sell?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will have the right to complete the transaction for the sale of the Southern Steer Business or Major Assets to a purchaser according to the terms and conditions contained in the Franchisee's Offer to the Franchisor if: (a) the Franchisor delivers a Waiver Notice to the Franchisee, (b) the Franchisor fails to deliver either a Waiver Notice or the Notice of Intent to Purchase to the Franchisee within 30 days after receiving the Franchisee's Offer, (c) the Franchisor terminates its Notice of Intent to Purchase during the due diligence period pursuant to the provisions of Section 19.2, or (d) the Franchisee and the Franchisor fail to agree on the terms and conditions for the definitive agreement or agreements for the purchase of the Southern Steer Business or Major Assets by the Franchisor from the Franchisee (other than those objective terms and conditions contained in the Franchisee's Offer) on or before the 120th day after the Notice Date.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, when a franchisee offers to sell their Southern Steer business, Southern Steer, as the franchisor, has two potential responses. Southern Steer can either deliver a Waiver Notice to the franchisee, indicating they waive their right to purchase the business, or they can deliver a Notice of Intent to Purchase, signaling their intention to buy the franchise.
If Southern Steer fails to respond with either a Waiver Notice or a Notice of Intent to Purchase within 30 days of receiving the franchisee's offer, the franchisee is then free to proceed with the sale to another purchaser. Similarly, if Southern Steer terminates its Notice of Intent to Purchase during the due diligence period, the franchisee can sell to another buyer. The franchisee can also proceed with a sale to a third party if the franchisee and Southern Steer cannot agree on the terms for the purchase by the 120th day after the notice date.
However, if the franchisee negotiates changes to the terms of the sale with a potential purchaser that were previously unacceptable to Southern Steer, the franchisee is obligated to re-offer the business to Southern Steer under these new terms. Failure to do so constitutes a material breach of the franchise agreement. These stipulations ensure Southern Steer maintains control over who enters the franchise system and protects their interests in the brand.