Can the effective date of the Southern Steer agreement be changed by the franchisor?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Franchised Location has not yet been determined as of the Effective Date of this Agreement, then when the address of the Franchised Location is determined, the street address, city and state for the Franchised Location will be inserted in Attachment A to this Agreement and signed by both the Franchisor and the Franchisee.
Franchisor reserves the right to terminate the Franchise Agreement if Franchisee fails to provide Site Information for the Franchised Location and fails to lease a site for the Franchised Location, approved by Franchisor, within 90 days after the Effective Date of this Agreement.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, the effective date of the franchise agreement is subject to certain conditions, particularly concerning the location of the franchise. The franchise agreement becomes effective once signed by both Southern Steer and the franchisee. However, if a location has not been determined by this date, the address will be added to Attachment A once it is finalized and agreed upon by both parties.
Southern Steer retains the right to terminate the franchise agreement if the franchisee does not provide site information and secure a location approved by Southern Steer within 90 days of the agreement's effective date. This clause underscores the importance of promptly identifying and securing an appropriate site for the Southern Steer business.
For a prospective franchisee, this means the 'effective date' is not just a formality but is tied to concrete actions regarding site selection. Failure to meet the 90-day deadline for site approval could lead to termination of the agreement by Southern Steer. This conditionality is relatively common in franchise agreements, as the location is crucial to the success of the business.