Must the Franchise Agreements signed 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 signed 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 Southern Steer's then-current Franchise Agreements for each business opened under the agreement.
Southern Steer may modify the terms, conditions, and economics of the Franchise Agreement from time to time. Any changes or modifications made to the Franchise Agreement in the future will not apply to any Franchise Agreement previously executed by the Multi-Unit Developer. The Multi-Unit Developer will be required to pay any additional fees contained in any Franchise Agreement signed after the date of the Multi-Unit Development Agreement.
This means that as Southern Steer updates its franchise agreement over time, franchisees signing new agreements under a multi-unit deal will be subject to the updated terms. However, previously signed franchise agreements remain under the terms in place when they were executed. This ensures that franchisees are only bound by the terms they agreed to at the time of signing, while also allowing Southern Steer to adapt its franchise model as needed.