Does the Southern Steer Franchise Disclosure Document include Exhibit D, the Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
Issuance Date: January 31, 2025. I received a disclosure document dated January 31, 2025, that included the following Exhibits:
Exhibit A: Franchise Agreement and Attachments Attachment A Attachment B Attachment C Attachment D Attachment E Attachment F Attachment G Attachment H Attachment I-1 Attachment I-2 Attachment J Franchisee Questionnaire Site, Protected Area, Required Opening Date Statement of Ownership Personal Guaranty Authorization to Honor Electronic Funds Transfer Conditional Assignment of Telephone Listing, Social Media and Directory Listing Agreement Landlord's Consent to Assignment Lease Form of Lease Addendum State Specific Addendum Non-Competition and Non-Disclosure Agreement (Owners) Non-Competition and Non-Disclosure Agreement (Management Staff) Exhibit B: Financial Statements Exhibit C: List of Current and Former Franchisees, Company-Owned Southern Steer Businesses and Franchise Agreements Signed But Not Opened Exhibit D: Multi-Unit Development Agreement Exhibit E: Sample Release Exhibit F: State Agency/Agents for Service of Process Exhibit G: State-Specific Addendum Exhibit H: Brand Manual Table of Contents Exhibit I: Deposit Agreement Exhibit J: State Effective Dates and Receipt
Source: Item 21 — EXHIBIT B: FINANCIAL STATEMENTS (FDD page 6)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, Exhibit D is indeed the Multi-Unit Development Agreement. The document confirms that prospective multi-unit developers will be required to sign this agreement if they wish to develop multiple Southern Steer locations within a designated geographic area. This agreement outlines the developer's rights and obligations to open a minimum of three Southern Steer businesses within a specified timeframe, known as the Development Schedule.
Specifically, the FDD states that the Multi-Unit Development Agreement (MUDA) is attached as Exhibit D. It also clarifies that a separate Franchise Agreement, which may differ from the initial agreement, must be signed for each Southern Steer business developed under the MUDA. This indicates that the MUDA sets the stage for future individual franchise agreements, each governing a specific location.
Furthermore, the FDD emphasizes that Southern Steer retains the right to approve or deny a MUDA, regardless of the applicant's progress or expenses incurred. This highlights the franchisor's control over expansion and the importance of meeting their qualifications. The FDD also notes that Section 4.1 of the Multi-Unit Development Agreement is subject to amendments regarding the deferral of initial franchise and development fees, contingent upon the franchisor fulfilling pre-opening obligations and the franchisee commencing business operations.