Under what condition can Southern Steer Franchising International, LLC assume the lease obligations of a Southern Steer franchisee?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
t as evidence of the exclusive rights of the Franchisor to such telephone numbers, social media accounts and directory listings, and this Agreement will constitute the authority from the Franchisee for the telephone, directory, social media and other company and listing agency to transfer all such telephone numbers, directory, social media and directory listings to the Franchisor. The Franchisee will not make any claims or commence any action against the telephone, directory, social media and other company and the listing agencies for complying with this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above.
"Franchisor" "Franchisee" SOUTHERN STEER FRANCHISING INTERNATIONAL, LLC Legal Name Print Name Print Name Its Its#### ATTACHMENT F LANDLORD'S CONSENT TO ASSIGNMENT OF LEASE
| Franchisee of SOUTHERN STEER FRANCHISING INTERNATIONAL, LLC ("Franchisee") of its right, title and interest in and to the premises lease dated as of, by and between the Landlord and the Franchisee ("Lease"), to SOUTHERN STEER FRANCHISING INTERNATIONAL, LLC ("Franchisor"), pursuant to a Franchise Agreement between the Franchisor and the Franchisee, dated as of, ("Franchise Agreement"), and as an inducement to the Franchisor to enter into the Franchise Agreement with the Franchisee, agrees with the Franchisor as follows: | The undersigned landlord ("Landlord") hereby consents to the assignment by the undersigned |
|---|---|
| 1. | In the event of default by the Franchisee under the Franchise Agreement, the Franchisor or |
| its designee may assume, enforce and perform the obligations of the Lease with the same force and effect | |
| as if assumed, enforced and performed by the Franchisee. The Landlord will accept the Franchisor's (or its | |
| designee's) performance in lieu of performance by the Franchisee in satisfaction of the Franchisee's future | |
| obligations under the Lease. | |
| 2. without giving written notice to the Franchisor and first providing to the Franchisor a reasonable opportunity, but not less than 30 days, to: (a) cause the Franchisee Franchisee in default under the Franchise Agreement and exercise its rights under the Franchise Agreement. |
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, Southern Steer Franchising International, LLC can assume a franchisee's lease obligations under specific conditions related to default or termination of the franchise agreement. If a Southern Steer franchisee defaults under the Franchise Agreement, Southern Steer has the option to assume, enforce, and perform the obligations of the lease. The landlord is obligated to accept Southern Steer's performance in place of the franchisee's, satisfying the franchisee's future obligations under the lease. This provides Southern Steer with a mechanism to maintain control over the location and continue operations, if desired, in the event of a franchisee's failure.
Additionally, Southern Steer has the right to take an automatic assignment of the franchisee's lease interest if the franchisee defaults under either the lease or the franchise agreement and fails to cure the default within the applicable cure period. In this scenario, Southern Steer can re-assign or sublet the lease to a new franchisee without the landlord's consent. Upon reassignment, Southern Steer is fully released from any liability to the landlord, provided the new franchisee agrees to assume the original franchisee's obligations under the lease. This clause ensures Southern Steer can transition the location to a new operator efficiently.
Furthermore, the franchisee is required to assign their rights in the lease to Southern Steer as security for their performance under the franchise agreement. If an event of default occurs, Southern Steer has the option to assume the lease for the remaining term under the same terms and conditions as originally contracted. Events of default include termination of the agreement, the franchisee ceasing business at the location, or the lease being terminated. This assignment provides Southern Steer with a security interest in the lease, allowing them to protect their investment and brand integrity by maintaining control over the location in case of franchisee default or termination.