How can the Southern Steer franchise agreement be executed, and when does it become binding?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
emises as required under this Agreement.
- 24.2. Financial Obligations. The Franchisee has no material liabilities, adverse claims, commitments or obligations of any nature as of the date of this Agreement, whether accrued, unliquidated, absolute, contingent or otherwise, except as disclosed to the Franchisor in writing or set forth in the financial statements of the Franchisee that have been provided to the Franchisor.
- 24.3. Compliance with Agreement. The Franchisee and the Owners represent, warrant and covenant that they will comply with all requirements and will perform all obligations in accordance with the terms and conditions of this Agreement.
- 24.4. Disclosure Document and Franchise Agreement. Franchisee have received a copy of the complete disclosure document required by the Trade Regulation Rule of the Federal Trade Commission concerning the franchise at least 14 calendar days prior to the date on which this Agreement was executed. Franchisee have received a fully completed copy of this Agreement at least seven calendar days prior to signing it. The Franchisee acknowledges that he/she/it signed and dated the Receipt Page attached to the franchise disclosure document.
- 24.5. No Violation of any Other Agreement or Commitment. The execution and performance of this Agreement by You does not violate or constitute a breach of the terms of any other agreement or commitment to which You are a party.
- 24.6. Compliance. Franchisee, Franchisee's Operating Principal, and if Franchisee is a partnership, limited liability company, corporation or other entity, each of Franchisee partners, members, managers, shareholders, Guarantor(s) and Owners, as the case may be, represent that Franchisee and each of them is capable of complying and will comply with this Agreement.
- 24.7. Consultation with Advisers; Independent Investigation, Acknowledge of Franchisee. Franchisor has advised Franchisee to consult with advisers of Franchisee's own choosing. Franchisee have been given ample time to do so before signing this Agreement. Franchisee has conducted an independent investigation of the Southern Steer Business contemplated by this Agreement and recognize that the success of Franchisee's Southern Steer Business is speculative, involves a high degree of financial risk and depends, to a large extent, upon Franchisee's ability as an independent business person and Franchisee's skills, initiative, hard work and other factors. Franchisee understands that Franchisee may sustain losses as a result of the operation or the closing of Franchisee's Southern Steer Business.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, before executing the franchise agreement, Southern Steer requires that the franchisee receives a copy of the complete disclosure document at least 14 calendar days prior to the execution date. Additionally, the franchisee must receive a fully completed copy of the agreement itself at least seven calendar days before signing. The franchisee must also acknowledge that they signed and dated the receipt page attached to the franchise disclosure document.
Southern Steer also requires compliance from the franchisee, the operating principal, and if the franchisee is a partnership, LLC, corporation, or other entity, each of the franchisee's partners, members, managers, shareholders, guarantors, and owners must represent that they are capable of complying and will comply with the agreement. Furthermore, Southern Steer advises the franchisee to consult with advisors of their own choosing and acknowledges that they have been given ample time to do so before signing the agreement.
Moreover, the franchisee acknowledges that they have conducted an independent investigation of the Southern Steer business and recognize that its success is speculative, involves a high degree of financial risk, and depends largely on their ability as an independent business person, as well as their skills, initiative, and hard work. The franchisee also understands that they may sustain losses as a result of operating or closing their Southern Steer business. The franchisee represents and warrants that they have engaged their own legal advisors who are licensed in the protected area and specialize in franchise law to ensure they understand their obligations under the agreement and all applicable laws. They also warrant that they have engaged legal advisors to review all legal documents, including the lease and construction contracts. The franchisee further represents and warrants that they have familiarized themselves with the laws and licensing requirements, including liquor laws, which govern the operation of their Southern Steer business in their protected area.
In summary, the execution of the Southern Steer franchise agreement involves a thorough process where the franchisee is provided with ample time and resources to understand their obligations and the risks involved. The agreement becomes binding once these conditions are met and the franchisee signs the agreement, acknowledging their understanding and compliance with its terms.