Will changes or modifications made to the Franchise Agreement in the future be applicable to any Franchise Agreement previously executed by the Multi-Unit Developer for a Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Modifications to Franchise Agreement.
The Multi-Unit Developer acknowledges that (a) the terms, conditions and economics of the Franchise Agreement may be modified from time to time by the Franchisor, (b) any changes or modifications made to the Franchise Agreement in the future will not be applicable to any Franchise Agreement previously executed by the Multi-Unit Developer, and (c) the Multi-Unit Developer will be required to pay any additional Fees contained in any Franchise Agreement signed by the Multi-Unit Developer after the date of this Agreement.
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, any changes or modifications made to the Franchise Agreement in the future will not apply to any Franchise Agreement previously executed by the Multi-Unit Developer. However, the Multi-Unit Developer will be required to pay any additional fees contained in any Franchise Agreement signed after the date of the agreement.
This means that if Southern Steer updates its Franchise Agreement, those changes will only affect agreements signed after the update. Existing franchisees operating under older agreements will not be subject to the new terms, except for the obligation to pay additional fees outlined in subsequently signed agreements. This provides a level of stability for existing franchisees, as their core agreement terms remain consistent.
However, Multi-Unit Developers should be aware that any new Southern Steer franchise agreements they sign will be subject to the then-current terms, including any additional fees. This could impact the financial planning and operational strategies for future locations. It is important for developers to carefully review any new Franchise Agreements to understand the updated terms and conditions before signing.
This clause protects the multi-unit developer from unexpected changes to existing agreements while ensuring that new franchises operate under the most current standards and fee structures. Multi-unit developers should consult with legal counsel to fully understand the implications of this clause and how it may affect their long-term investment with Southern Steer.