What is a 'Waiver Notice' in the context of transferring a Southern Steer franchise?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will not Transfer or otherwise dispose of any interest in the Southern Steer Business or any part of the Major Assets to any purchaser without first offering the same to the Franchisor in a written offer that contains the purchase price, payment terms, and all other material terms and conditions of the proposed transaction with the third party, including price and payment terms ("Franchisee's Offer").
The Franchisor will have 30 days after receipt of the Franchisee's Offer to give the Franchisee written notice of the Franchisor's desire to either waive its option to purchase ("Waiver Notice") or its intention to exercise its rights to purchase or acquire the Major Assets according to the terms contained in the Franchisee's Offer ("Notice of Intent to Purchase").
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, a 'Waiver Notice' is a written notification from Southern Steer to the franchisee, indicating that Southern Steer is declining its option to purchase the franchise business. This notice is relevant when a franchisee intends to transfer or sell their Southern Steer business or its major assets to a third party.
Specifically, before a franchisee can proceed with a sale to another buyer, they must first offer the business to Southern Steer with a written offer containing all the terms of the proposed sale. Southern Steer then has 30 days to respond with either a 'Waiver Notice,' indicating they will not be purchasing the business, or a 'Notice of Intent to Purchase,' signaling their interest in buying the franchise under the terms provided in the franchisee's offer.
If Southern Steer issues a 'Waiver Notice' or fails to respond within the 30-day period, the franchisee is then free to complete the sale to the third-party purchaser, provided the terms remain consistent with the original offer made to Southern Steer. This process ensures that Southern Steer has the first right of refusal, protecting the brand and the interests of other franchisees within the Southern Steer system.