What is the definition of 'actively engage in development activities' for a Southern Steer Multi-Unit Developer?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) the Multi-Unit Developer ceases to actively engage in development activities in the Development Territory in order to meet the Development Schedule or otherwise abandons the business authorized hereunder for a period of three consecutive months, or any shorter period that indicates an intent by the Franchisee to discontinue development of Southern Steer Businesses in the Development Territory;
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 must actively engage in development activities to meet the Development Schedule. Failure to do so can result in a breach of the agreement. Southern Steer considers a Multi-Unit Developer to have ceased active engagement if they abandon development activities for three consecutive months, or any shorter period that indicates an intent to discontinue development.
This requirement means that a Multi-Unit Developer must consistently work towards opening new Southern Steer locations within their designated territory, as outlined in the Development Schedule. This includes site selection, securing necessary permits, construction, and training staff. The agreement emphasizes that time is of the essence, meaning Southern Steer expects the developer to adhere strictly to the agreed-upon timeline.
For a prospective Southern Steer Multi-Unit Developer, this definition highlights the importance of careful planning and resource allocation. They must have the capacity and commitment to manage multiple projects simultaneously to meet the required development pace. Abandoning development, even for a short period, can have serious consequences, potentially leading to termination of the agreement. Therefore, it is crucial to have a robust development strategy and sufficient capital to avoid any delays or interruptions in the expansion plan.