Under what conditions can Southern Steer waive an obligation or restriction under the Franchise Agreement?

According to the 2025 Southern Steer Franchise Disclosure Document, if Southern Steer chooses to waive its rights to collect any amounts that would have become due if the franchisee had continued in business for the initial term of the agreement, the franchisee must sign a general release in favor of the franchisor. This means that if Southern Steer decides not to pursue collecting outstanding payments from a franchisee who has left the system before the end of their franchise term, the franchisee must sign a release, which likely absolves Southern Steer from any further claims related to those amounts.

This condition protects Southern Steer by ensuring that if they forgo collecting payments, the franchisee cannot later claim that Southern Steer still owes them something. It also provides clarity and finality to the financial relationship between the franchisor and franchisee upon early termination.

This type of release is a fairly standard practice in franchising when waiving financial obligations, as it provides legal protection for the franchisor and ensures a clean break in the business relationship. A prospective Southern Steer franchisee should carefully review the terms of the general release to understand the full scope of what they are giving up in exchange for the waiver of payments.