Besides what is specifically contained in the Franchise Disclosure Document, does Southern Steer make any other representations or warranties regarding the sales, earnings, income, profits, Revenues, economics, business or financial success, or value of the Multi-Unit Developer's Southern Steer Businesses?
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 guarantees, either expressed or implied, from Southern Steer or its agents regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, or the value of their Southern Steer Businesses, unless these are expressly stated in the Franchise Disclosure Document. This acknowledgment confirms that Southern Steer is not providing any additional assurances or promises about the financial performance of the franchise beyond what is disclosed in the FDD.
This means that a prospective franchisee should not rely on any verbal or informal promises about potential financial outcomes. If any such representations were made, the Multi-Unit Developer is expected to notify Southern Steer's Executive Management in writing, detailing the representations and the individuals who made them. Furthermore, the document states that the Multi-Unit Developer would not have executed the agreement had they relied on any representations not included in the FDD.
This provision protects Southern Steer from potential legal claims based on undocumented financial projections or guarantees. It also emphasizes the importance of the FDD as the primary source of information for prospective franchisees. A potential franchisee should conduct their own independent investigation and due diligence, as acknowledged in the document, to assess the business and economic risks associated with operating a Southern Steer franchise.