Can the Southern Steer franchise agreement be changed or modified, and if so, what is the required procedure?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Modifications to Franchise Agreement.
The Multi-Unit Developer acknowledges that (a) the terms, conditions and economics of the Franchise Agreement may be modified from time to time by the Franchisor, (b) any changes or modifications made to the Franchise Agreement in the future will not be applicable to any Franchise Agreement previously executed by the Multi-Unit Developer, and (c) the Multi-Unit Developer will be required to pay any additional Fees contained in any Franchise Agreement signed by the Multi-Unit Developer after the date of this Agreement.
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, the terms, conditions, and economics of the Franchise Agreement may be modified by Southern Steer from time to time. However, any changes or modifications made to the Franchise Agreement in the future will not apply to any Franchise Agreement previously executed by a Multi-Unit Developer.
This means that if you are a Multi-Unit Developer with existing Southern Steer franchises, any future changes to the Franchise Agreement will only apply to new Franchise Agreements you sign after the changes are made. You will be required to pay any additional fees contained in any Franchise Agreement signed after the date of the modifications.
This clause protects existing franchisees from unexpected changes that could negatively impact their current operations, while also allowing Southern Steer to adapt its franchise model for new franchisees as market conditions evolve. Prospective franchisees should carefully review the current Franchise Agreement and any potential modifications before signing, to fully understand their obligations and the potential for future changes.