When can the Multi-Unit Developer purchase or lease property for a proposed Southern Steer Business site?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- Timing Involving Leases for Proposed Sites.
The Multi-Unit Developer will not purchase or lease the property for the proposed site for the Franchised Location of any Southern Steer Business until the Multi-Unit Developer has signed the corresponding Franchise Agreement with the
Franchisor for such Southern Steer Business and has complied with the applicable provisions of the corresponding Franchise Agreement relating to the selection of the site for the Franchised Location.
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 cannot purchase or lease property for a proposed Southern Steer location until they have signed the corresponding Franchise Agreement with Southern Steer for that specific business. Additionally, the Multi-Unit Developer must comply with all applicable provisions within that Franchise Agreement related to site selection. This ensures that Southern Steer maintains control over site selection and that the franchisee is committed to the location before incurring property costs.
This requirement protects both Southern Steer and the Multi-Unit Developer. Southern Steer can ensure that all locations meet their brand standards and strategic criteria. The Multi-Unit Developer avoids the risk of securing a property that Southern Steer might not approve, which could lead to financial losses and delays.
This stipulation is fairly common in franchising, as site selection is a critical factor in the success of a franchise. Franchisors typically want to approve locations to maintain brand consistency and optimize market penetration. Prospective Southern Steer franchisees should carefully review the site selection provisions in the Franchise Agreement to understand the specific criteria and approval process.