What further documents might a party be required to execute and deliver to effectuate the provisions of the Southern Steer Multi-Unit Development Agreement?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
t Schedule as being reasonable and viable.
6. OTHER OBLIGATIONS OF MULTI-UNIT DEVELOPER.
- 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. The Franchisee agrees to comply with the terms and conditions of each Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreements shall be treated as a breach of this Agreement. The failure of the Multi-Unit Developer or the Controlled Entity to provide the Franchisor with an executed Franchise Agreement by the end of any applicable Development Period set out in the Development Schedule will constitute a material breach of this Agreement, and the Franchisor will have the right to terminate this Agreement as provided for herein
- Ownership of Controlled Entity. All Owners of the Controlled Entity are subject to Franchisor's prior approval before signing any Franchise Agreement and must meet the Franchisor's then current criteria for Franchisees. If the Franchise Agreement required to be executed pursuant to this Section 6 (and the other applicable provisions of this Agreement) is executed by an approved Controlled Entity, then: (a) the Multi-Unit Developer (or the Multi-Unit Developer's Owners) will be required to maintain at least a 51% Ownership Interest in the Controlled Entity during the Term of this Agreement; and (b) the Multi-Unit Developer will not be relieved from complying with the terms, conditions and the Multi-Unit Developer's obligations set forth in this Agreement. If the Multi-Unit Developer elects to have a Controlled Entity execute the Franchise Agreement for any Southern Steer Business being developed under this Agreement, then all terms, conditions and obligations under this Agreement relating to compliance with the Franchise Agreement for that Southern Steer Business will be the obligation of the Controlled Entity, and not the Multi-Unit Developer.
- 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. The rights and privileges granted to the Multi-Unit Developer by the Franchisor under this Agreement are applicable only in the Development Territory, are personal in nature, and may not be used elsewhere or in any other area by the Multi-Unit Developer.
- Proprietary Marks and Confidential Information. Notwithstanding any provision to the contrary under this Agreement, the Multi-Unit Developer understands and agrees that this Agreement does not grant the Multi-Unit Developer any right to use the Marks or to use any of the Franchisor's Confidential Information and Trade Secrets. Rights to the Marks, Confidential Information and Trade Secrets are granted only under the Franchise Agreements to be executed by the Franchisor and the Multi-Unit Developer.
- Timing Involving Leases for Proposed Sites. The Multi-Unit Developer will not purchase or lease the property for the proposed site for the Franchised Location of any Southern Steer Business until the Multi-Unit Developer has signed the corresponding Franchise Agreement with the Franchisor for such Southern Steer Business and has complied with the applicable provisions of the corresponding Franchise Agreement relating to the selection of the site for the Franchised Location.
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, several documents may need to be executed to fulfill the Multi-Unit Development Agreement. Franchise Agreements are required for each Southern Steer business opened under the agreement, and these agreements may differ from the initial Franchise Agreement. The Multi-Unit Developer or a Controlled Entity must sign the then-current Franchise Agreements. Failure to comply with the terms and conditions of each Franchise Agreement or provide an executed Franchise Agreement by the end of the Development Period constitutes a breach of the agreement. All owners of a Controlled Entity are subject to Southern Steer's approval and must meet the current criteria for franchisees before signing any Franchise Agreement.
If a Controlled Entity executes the Franchise Agreement, the Multi-Unit Developer must maintain at least a 51% ownership interest in the Controlled Entity during the agreement's term. The Multi-Unit Developer is not relieved from complying with the terms and conditions of the Multi-Unit Development Agreement. If the Multi-Unit Developer elects to have a Controlled Entity execute the Franchise Agreement, the Controlled Entity, not the Multi-Unit Developer, is obligated to comply with the Franchise Agreement's terms, conditions, and obligations.
Furthermore, if any person or entity becomes a new owner of the Multi-Unit Developer or Controlled Entity, they must execute all documents required by Southern Steer within five days of becoming an owner. The Multi-Unit Developer must ensure that the execution of the Multi-Unit Development Agreement is within the powers granted by their Organizational Documents and has been duly authorized and approved. The Multi-Unit Developer must also provide the Franchisor with a signed and dated copy of the Receipt Page attached to the Franchise Disclosure Document.