Who should the Southern Steer Multi-Unit Developer notify if they receive any unauthorized representations?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Multi-Unit Developer and Controlled Entity acknowledge that, it has not received any estimates, projections, representations, warranties or guaranties, expressed or implied, regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters pertaining to the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses from the Franchisor or any of its agents that were not expressly set forth in the Franchise Disclosure Document received by the Multi-Unit Developer and Controlled Entity (if any) from the Franchisor ("Representations").
The Multi-Unit Developer and Controlled Entity further acknowledges that if it had received any such Representations, it would not have executed this Agreement, promptly notified the Executive Management of the Franchisor in writing of the person or persons making such Representations and provided to the Franchisor a specific written statement detailing the Representations made.
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, if a Multi-Unit Developer receives any estimates, projections, representations, warranties, or guaranties regarding potential sales, revenues, income, profits, earnings, expenses, financial or business success, value of the Southern Steer Businesses, or other economic matters pertaining to the Multi-Unit Developer's or Controlled Entity's Southern Steer Businesses from Southern Steer or any of its agents that were not expressly set forth in the Franchise Disclosure Document, the Multi-Unit Developer should notify the Executive Management of Southern Steer in writing.
This notification should be prompt and include a specific written statement detailing the representations made. This requirement ensures that Southern Steer is aware of any unauthorized claims being made about the franchise opportunity and allows them to take corrective action.
By promptly reporting any unauthorized representations, the Multi-Unit Developer protects themselves and the integrity of the Southern Steer franchise system. Failure to report such representations could be interpreted as an acceptance of those representations, potentially weakening any future claims against Southern Steer based on those representations. This also allows Southern Steer to maintain control over the information being disseminated about its franchise and ensure that prospective franchisees are receiving accurate and consistent information.