Must the Franchise Agreements for each Southern Steer Business opened under the Multi-Unit Development Agreement be the same as the Initial Franchise Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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 Franchise Agreements for each Southern Steer Business opened under a Multi-Unit Development Agreement may not be the same as the Initial Franchise Agreement. The Multi-Unit Developer or a Controlled Entity must sign the then-current Franchise Agreements for each location. These agreements are subject to change over time, and modifications made to the Franchise Agreement in the future will not apply to previously executed agreements.
This means that as Southern Steer updates its franchise agreement, franchisees opening new locations under a multi-unit development deal will be subject to the new terms. However, previously signed franchise agreements will remain in effect under their original terms. This is a fairly standard practice in franchising, as franchise systems evolve and adapt over time.
The multi-unit developer acknowledges that the terms, conditions, and economics of the Franchise Agreement may be modified from time to time by Southern Steer. The developer is also required to pay any additional fees contained in any Franchise Agreement signed after the date of the Multi-Unit Development Agreement. Therefore, it is critical for multi-unit developers to carefully review each new franchise agreement and understand any changes or additional obligations it contains.
Prospective franchisees should be aware that the terms of their franchise agreement can change over time, and they should factor this into their long-term business planning. It is also important to maintain open communication with Southern Steer to stay informed about any upcoming changes to the franchise agreement.