Will future changes or modifications to the Franchise Agreement apply to Franchise Agreements previously executed by the Multi-Unit Developer for a Southern Steer Business?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 Southern Steer's 2025 Franchise Disclosure Document, 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. However, the Multi-Unit Developer will be required to pay any additional Fees contained in any Franchise Agreement signed after the date of the agreement.
This means that if you are a Multi-Unit Developer with Southern Steer, the terms of your existing Franchise Agreements are protected from future changes. This provides a level of stability and predictability in your business relationship with Southern Steer. You can rely on the terms you initially agreed to without worrying about unexpected modifications that could negatively impact your operations or profitability.
However, it's important to note that this protection only applies to Franchise Agreements already in place. Any new Franchise Agreements you sign with Southern Steer after a modification to the standard agreement will be subject to the new terms and any additional fees. Therefore, it is crucial to carefully review any new Franchise Agreements to understand the updated obligations and costs before committing to them.