What action should a Southern Steer Multi-Unit Developer take if they receive any estimates, projections, representations, warranties or guaranties regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters pertaining to the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses from the Franchisor or any of its agents that were not expressly set forth in the Franchise Disclosure Document?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Multi-Unit Developer and Controlled Entity acknowledge that, it has not received any estimates, projections, representations, warranties or guaranties, expressed or implied, regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters pertaining to the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses from the Franchisor or any of its agents that were not expressly set forth in the Franchise Disclosure Document received by the Multi-Unit Developer and Controlled Entity (if any) from the Franchisor ("Representations").
The Multi-Unit Developer and Controlled Entity further acknowledges that if it had received any such Representations, it would not have executed this Agreement, promptly notified the Executive Management of the Franchisor in writing of the person or persons making such Representations and provided to the Franchisor a specific written statement detailing the Representations made.
Source: Item 5 — and 7 of the FDD, Section 3.1 of the Franchise Agreement and Section 4.1 of the Multi-Unit Development Agreement are hereby amended to state that payment of the initial franchise fee and development fee will be deferred until We have satisfied Our pre-opening obligations, and You have commenced business operations. (FDD pages 168–290)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, a Multi-Unit Developer acknowledges that they have not received any estimates, projections, representations, warranties, or guaranties, whether expressed or implied, regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, the value of Southern Steer Businesses, or other economic matters related to their Southern Steer Businesses from Southern Steer or its agents, unless these are expressly outlined in the Franchise Disclosure Document. This acknowledgment is a crucial part of the agreement, confirming that the developer is making decisions based on their own independent investigation and not relying on any unverified claims.
Furthermore, the FDD stipulates that if a Multi-Unit Developer does receive any such representations not included in the Franchise Disclosure Document, they are obligated to take immediate action. Specifically, the developer must not proceed with executing the agreement. Instead, they must promptly notify the Executive Management of Southern Steer in writing. This notification should include the identity of the person or persons who made the representations and a detailed written statement outlining the specifics of those representations.
This requirement protects both the franchisee and Southern Steer. By demanding transparency and adherence to the documented information in the Franchise Disclosure Document, Southern Steer aims to ensure that all franchisees have a clear and consistent understanding of the potential risks and rewards. It also prevents misunderstandings or misinterpretations of verbal promises or projections that may not be accurate or sustainable. For a prospective franchisee, this means it is essential to rely solely on the information provided in the FDD and to report any conflicting information immediately to Southern Steer's management.