factual

Where can the Multi-Unit Developer develop and open franchised Southern Steer Businesses under the Multi-Unit Development Agreement?

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;

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, a Multi-Unit Developer is granted the right to develop and operate Southern Steer businesses within a specific "Development Territory." This right is granted for the term of the agreement, and the territory's geographical area is detailed in Attachment A of the agreement. The Multi-Unit Development Agreement does not constitute a franchise sale but grants the developer the right and obligation to enter into Franchise Agreements to operate Southern Steer businesses in the Development Territory.

The Development Schedule, also found in Attachment A, is a critical component of the agreement, requiring the Multi-Unit Developer to open and continuously operate a minimum of three Southern Steer Businesses within the Development Territory. Compliance with this schedule is determined by the number of Southern Steer Businesses that are actually open and operating in the territory. The developer must adhere to specific Development Periods, opening a certain number of businesses within each 12-month period from the agreement's effective date.

While the rights granted are non-exclusive, Southern Steer assures that as long as the Multi-Unit Developer is not in default, they will not operate or license a third party to operate a Southern Steer Business in the Development Territory during the initial period outlined in Attachment A. However, upon the expiration of this first period, Southern Steer retains the right to operate or license others within the same Development Territory. This agreement only allows the Multi-Unit Developer to develop Southern Steer locations within the specified Development Territory and nowhere else.

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.