For determining compliance with the Development Schedule for Southern Steer, what counts towards the number of required businesses?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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, when determining whether a multi-unit developer is meeting their development schedule, only Southern Steer businesses that are actually open and continuously operating in the designated development territory are counted. The multi-unit developer must open and operate a minimum of three Southern Steer businesses within their territory.
The development schedule is a crucial part of the Multi-Unit Development Agreement. The franchisee must develop the agreed-upon number of Southern Steer businesses within each 12-month development period from the agreement's effective date. These businesses must be opened according to the set development periods, and the individual Franchise Agreements for each Southern Steer location will be adjusted accordingly. Southern Steer emphasizes that adhering to the development schedule is essential.
Southern Steer also requires the Multi-Unit Developer or a Controlled Entity to sign the then-current Franchise Agreements for each Southern Steer Business opened under the terms of the Multi-Unit Development Agreement. The FDD notes that these Franchise Agreements may not be the same as the Initial Franchise Agreement. The franchisee must comply with the terms and conditions of each Franchise Agreement, and failure to do so is considered a breach of the Multi-Unit Development Agreement.