Does the definition of 'Dispute' in the Southern Steer agreement include disputes related to the relationship of the parties?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Section 14.4, "Dispute" means any disputes, controversies or claims between Franchisor, its Affiliate, shareholders, owners, officers, directors, agents, employees and attorneys (in their respective capacity) and Multi-Unit Developer and Controlled Entity (if any) and Multi-Unit Developer and Controlled Entity (if any)'s Operating Principal, Owners, Guarantors, Designated Manager(s), affiliates, officers, directors, agents and employees (collectively, "Parties") (a) arising out of or related to this Agreement or any other agreement between the Parties relating to the Southern Steer Business or the relationship of the Parties hereto; (b) the relationship of the Parties hereto; (c) the Multi-Unit Developer or Controlled Entity's development of Southern Steer Businesses; (d) the scope or validity of this Agreement or any other agreement between the Parties relating to the Southern Steer Business or the relationship of the Parties hereto or any provision thereof (including the validity and scope of the arbitration obligation, which Multi-Unit Developer and Controlled Entity (if any) and Franchisor acknowledge will be determined by an arbitrator and not a court, unless the arbitrator invalidates the Arbitration provision in its entirety, in which case, wither party has the right to appeal such invalidation to a court of competent jurisdiction).
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 Southern Steer's 2025 Franchise Disclosure Document, the definition of "Dispute" explicitly includes disputes related to the relationship between the parties involved. The definition covers any disputes, controversies, or claims between Southern Steer, its affiliates, shareholders, owners, officers, directors, agents, employees, and attorneys, and the Multi-Unit Developer, Controlled Entity, their Operating Principal, Owners, Guarantors, Designated Manager(s), affiliates, officers, directors, agents, and employees.
This definition extends to disputes arising out of or related to the Franchise Agreement, any other agreement between the parties concerning the Southern Steer business, or the relationship itself. It also includes disputes related to the Multi-Unit Developer's or Controlled Entity's development of Southern Steer Businesses and the scope or validity of any agreement or provision, including the arbitration obligation.
This broad definition of "Dispute" means that a wide range of potential disagreements or conflicts between Southern Steer and its franchisees fall under the dispute resolution process outlined in the agreement, including arbitration. This could encompass issues related to contract interpretation, performance, or the general business relationship, giving franchisees a clear understanding of what types of conflicts are subject to the agreement's dispute resolution mechanisms.