What happens if Southern Steer and the Multi-Unit Developer agree on a mediator in writing?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Parties recognize and any mediator, arbitrator and judge is affirmatively advised, that certain provisions of this Agreement reflect rights of Franchisor and Multi-Unit Developer and Controlled Entity (if any) to take (or refrain from taking) certain actions in exerci
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 Southern Steer Franchise Disclosure Document, the parties involved recognize that certain provisions of the agreement allow Southern Steer and the Multi-Unit Developer to take or not take specific actions. Any mediator, arbitrator, or judge is advised that these provisions reflect the rights of both parties to exercise their business judgment.
This means that if a dispute arises and the parties agree to mediation, the mediator (as well as any arbitrator or judge involved later) must acknowledge that Southern Steer and the Multi-Unit Developer have the right to make business decisions as outlined in the franchise agreement. This acknowledgement is important because it reinforces the idea that the parties entered the agreement with certain rights and expectations regarding how the business would be managed.
For a prospective franchisee, this clause highlights the importance of carefully reviewing the franchise agreement and understanding the rights and obligations of both parties. It also suggests that Southern Steer emphasizes the importance of business judgment in resolving disputes, which could influence how mediation or arbitration proceedings are conducted.