factual

In the Southern Steer Multi-Unit Developer Agreement, what is specified in Section 2.1 regarding the Development Territory?

Southern_Steer Franchise · 2025 FDD

Answer from 2025 FDD Document

2. GRANT OF DEVELOPMENT RIGHTS; DEVELOPMENT TERRITORY.

Development Territory.

The Franchisor hereby grants to the Multi-Unit Developer, for the Term of this Agreement, the right to enter into Franchise Agreements with the Franchisor for the development and operation of Southern Steer Businesses in accordance with the development schedule set out in Attachment A ("Development Schedule") within the geographical area

  • ("Development Territory") set out in Attachment A.

This Agreement will not constitute the sale of a Franchise to the Multi-Unit Developer but rather will give the Multi-Unit Developer the right and obligation to enter into Franchise Agreements with the Franchisor to own and operate franchised Southern Steer Businesses in the Development Territory.

  • Non-Exclusive.

The Franchisee acknowledges that the rights granted in this Agreement are non-exclusive.

However, so long as Franchisee is not in default of this Agreement, the Franchise Agreement for Multi-Unit Developer's first Southern Steer Business ("Initial Franchise Agreement") or any other agreement between Multi-Unit Developer and Franchisor, Franchisor will not operate or license a third party to operate a Southern Steer Business in the Development Territory for the First Period set out in the Development Schedule attached hereto as Attachment A.

Upon expiration of the First Period, Franchisor has the right to operate and license third parties to operate Southern Steer Businesses in the Development Territory.

  • Reservation of Rights.

Notwithstanding Section 2.2, the Franchisor and its Affiliates will have the absolute right to:

  • (a) Subject to the terms and conditions of the Franchise Agreements between Franchisor and Multi-Unit Agreement regarding the Protected Area defined therein, to use, and license the use of, the System or component(s) thereof, for the operation of Southern Steer Businesses inside or outside the Development Area, regardless of proximity to the Development Area;

  • (b) To offer and sell any products and services sold at Southern Steer Businesses under any other names and marks, including through alternative channels of distribution anywhere;

  • (c) To offer and sell, and/or license or franchise others to offer and sell, products and services for Other Businesses and market Other Businesses to anyone, including prospective and existing franchisees anywhere within or outside of the Development Territory;

  • (d) To acquire businesses that are the same as or similar to the Southern Steer Business and operate such businesses anywhere within or outside of the Development Territory and to be acquired by any third party which operates businesses that are the same as or similar to the Southern Steer Business anywhere within or outside of the Development Territory;

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, Section 2.1 of the Multi-Unit Developer Agreement pertains to the grant of development rights and the development territory. It specifies that Southern Steer grants the Multi-Unit Developer the right to enter into Franchise Agreements for developing and operating Southern Steer businesses within a defined geographical area, as detailed in Attachment A, also known as the Development Schedule. This right is granted for the term of the agreement.

The agreement does not constitute the sale of a franchise but grants the developer the right and obligation to establish franchised Southern Steer businesses in the Development Territory. The rights granted are non-exclusive. However, Southern Steer agrees not to operate or license a third party to operate a Southern Steer Business in the Development Territory for a specified First Period, as outlined in Attachment A, provided the developer is not in default. After the First Period, Southern Steer reserves the right to operate or license others in the territory.

Southern Steer retains several rights, including using and licensing the System for Southern Steer Businesses inside or outside the Development Area, subject to the Franchise Agreements' terms regarding Protected Areas. They can also offer and sell products and services under other names and marks through different channels, offer and sell products/services for other businesses, and acquire or be acquired by businesses similar to Southern Steer, regardless of location. The specific geographic area of the Development Territory, the Development Schedule, and the length of the First Period are all detailed in Attachment A to the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.