Can the definition of 'Fiscal Year' for a Southern Steer franchise be changed?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.23.
Fiscal Year. "Fiscal Year" will mean the Franchisee's fiscal year.
The definition of Fiscal Year may be further defined in the Brand Manual and may in the future be changed by the Franchisor as specified in the Brand Manual or otherwise in writing by the Franchisor to address business practices and/or changes in the Internal Revenue Code.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to Southern Steer's 2025 Franchise Disclosure Document, the definition of 'Fiscal Year' for a franchisee is subject to change by the franchisor. The FDD states that the definition of 'Fiscal Year' may be further defined in the Brand Manual and may be changed in the future by Southern Steer. These changes can be specified in the Brand Manual or in writing by Southern Steer to address business practices or changes in the Internal Revenue Code.
This means that while the franchisee initially defines their fiscal year, Southern Steer retains the right to modify this definition. This could impact how a franchisee reports financial information and could require adjustments to their accounting practices to align with any changes mandated by Southern Steer.
Prospective franchisees should be aware of this flexibility and inquire about the potential frequency and nature of such changes. Understanding the conditions under which Southern Steer might alter the fiscal year definition is crucial for financial planning and reporting. Franchisees should also clarify how much advance notice they would receive before any such changes are implemented.