What is the dependency between the Development Schedule and the individual Southern Steer Franchise Agreements?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
signate from time to time.
5. DEVELOPMENT SCHEDULE.
- Development Schedule. The Multi-Unit Developer acknowledges and agrees that the Development Schedule set forth in Attachment A is a material provision of this Agreement. For purposes of determining compliance with the Development Schedule set forth in this Section 5.1, only the Multi-Unit Developer's Southern Steer Businesses actually open and continuously operating in the Development Territory as of a given date will be counted toward the number of Southern Steer Businesses required to be open and continuously operating. The Multi-Unit Developer will be required to open and operate a minimum of three Southern Steer Businesses in the Development Territory.
- Development Periods. At a minimum, the Multi-Unit Developer shall develop the number of Southern Steer Business in the Development Territory during each 12-month period from the Effective Date of this Agreement ("Development Period") in accordance with the Development Schedule. Notwithstanding any provision in the Franchise Agreement to the contrary, the Multi-Unit Developer will be required to open the Southern Steer Businesses developed by the Multi-Unit Developer under this Agreement according to the Development Periods set forth in the Development Schedule, and the Franchise Agreement for each of the Multi-Unit Developer's Southern Steer Businesses will be deemed to be amended accordingly. The Multi-Unit Developer agrees that time is of the essence with respect to compliance with the Development Schedule.
- Reasonableness of Development Schedule. The Multi-Unit Developer represents that it has conducted its own independent investigation and analysis of the prospects for the establishment of Southern Steer Businesses within the Development Territory and approves of the Development Schedule as being reasonable and viable.
6. OTHER OBLIGATIONS OF MULTI-UNIT DEVELOPER.
- Franchise Agreements. The Multi-Unit Developer or a Controlled Entity must sign our then-current Franchise Agreements for each Southern Steer Business opened under the terms of this Agreement. These Franchise Agreements may not be the same as the Initial Franchise Agreement. The Franchisee agrees to comply with the terms and conditions of each Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreements shall be treated as a breach of this Agreement. The failure of the Multi-Unit Developer or the Controlled Entity to provide the Franchisor with an executed Franchise Agreement by the end of any applicable Development Period set out in the Development Schedule will constitute a material breach of this Agreement, and the Franchisor will have the right to terminate this Agreement as provided for herein
- Ownership of Controlled Entity. All Owners of the Controlled Entity are subject to Franchisor's prior approval before signing any Franchise Agreement and must meet the Franchisor's then current criteria for Franchisees.
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 Development Schedule is a crucial part of the Multi-Unit Development Agreement. A Multi-Unit Developer is granted the right to open and operate multiple Southern Steer businesses within a specific Development Territory, but this is contingent on adhering to the Development Schedule outlined in Attachment A of the agreement. The Multi-Unit Developer must open and continuously operate a minimum of three Southern Steer Businesses in the Development Territory. The number of Southern Steer Businesses that are actually open and continuously operating by the Multi-Unit Developer as of a given date will be counted toward the number of Southern Steer Businesses required to be open and continuously operating.
The Development Schedule dictates the number of Southern Steer businesses the Multi-Unit Developer must establish within each 12-month Development Period from the agreement's effective date. The Franchise Agreement for each Southern Steer Business developed under the Multi-Unit Development Agreement will be amended to align with these Development Periods. Time is of the essence with respect to compliance with the Development Schedule. The Multi-Unit Developer must sign Southern Steer's current Franchise Agreement for each location opened under the Development Agreement. These Franchise Agreements may differ from the Initial Franchise Agreement.
Failure to meet the Development Schedule can lead to termination of the Multi-Unit Development Agreement. However, termination of the Development Agreement does not automatically terminate the individual Franchise Agreements for Southern Steer businesses already opened and operating. Upon termination, the Multi-Unit Developer loses the right to open additional Southern Steer businesses in the Development Territory, and these rights revert to Southern Steer. The Multi-Unit Developer must continue to pay all required fees and operate existing Southern Steer businesses according to the terms of their respective Franchise Agreements. The failure of the Multi-Unit Developer to provide Southern Steer with an executed Franchise Agreement by the end of any applicable Development Period set out in the Development Schedule will constitute a material breach of this Agreement, and Southern Steer will have the right to terminate this Agreement as provided for herein.