Under what conditions can Southern Steer terminate the Franchise Agreement if the Franchised Location is undetermined?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchised Location has not yet been determined as of the Effective Date of this Agreement, then when the address of the Franchised Location is determined, the street address, city and state for the Franchised Location will be inserted in Attachment A to this Agreement and signed by both the Franchisor and the Franchisee.
Franchisor reserves the right to terminate the Franchise Agreement if Franchisee fails to provide Site Information for the Franchised Location and fails to lease a site for the Franchised Location, approved by Franchisor, within 90 days after the Effective Date of this 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, if the specific location for the franchise has not been finalized by the effective date of the agreement, Southern Steer retains the right to terminate the agreement under certain conditions. Specifically, Southern Steer can terminate the Franchise Agreement if the franchisee fails to provide the necessary site information for the franchised location and also fails to secure a lease for a site that Southern Steer approves.
This right to terminate is time-sensitive. The franchisee must provide the site information and lease a site approved by Southern Steer within 90 days after the effective date of the Franchise Agreement. If the franchisee does not meet both of these conditions within the specified timeframe, Southern Steer has the option to terminate the agreement.
This clause protects Southern Steer from a franchisee who signs an agreement but then does not actively pursue or is unable to secure a suitable location. It ensures that the franchisee is committed to establishing the business within a reasonable timeframe. For a prospective franchisee, this means it is crucial to have a clear plan for site selection and lease negotiation before signing the Franchise Agreement to avoid potential termination.