Does the Southern Steer franchisor permit any promises, agreements, contracts, commitments, representations, understandings, or 'side deals' that vary or change the Southern Steer Agreement?
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.
- Conditions.
The Multi-Unit Developer hereby undertakes the obligation to develop and open franchised Southern Steer Businesses using the System in the Development Territory in strict compliance with the terms and conditions of this Agreement for the Term 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)
Based on the 2025 Franchise Disclosure Document, the terms and conditions within the Franchise Agreement for Southern Steer may be modified by the franchisor. However, any changes or modifications to the Franchise Agreement will not apply to any previously executed Franchise Agreements by a Multi-Unit Developer. The Multi-Unit Developer will be required to pay any additional fees in any Franchise Agreement signed after the date of the agreement.
This means that while Southern Steer retains the right to update its franchise agreement, those changes only affect agreements signed after the modification date. Existing franchisees operating under older agreements are not subject to the new terms or fees. This protects the financial expectations of franchisees who have already invested in the business based on a specific set of terms.
For prospective franchisees, this clause highlights the importance of carefully reviewing the current Franchise Agreement before signing. Franchisees should be aware that the terms could change for future agreements if they decide to expand or renew their franchise. It is also important to note that the Multi-Unit Developer must develop and open franchised Southern Steer Businesses in strict compliance with the terms and conditions of the agreement.